Recycled steel in the scrap yard of Outokumpu ’ s mill in Tornio , Finland , which is the largest material recycling center in Europe .
Taking circularity to new heights
Outokumpu and CRONIMET have expanded their partnership to take circularity to new heights – securing access to high-quality scrap near Outokumpu ’ s sites in Europe .
Text & images by Outokumpu
Outokumpu , a leading producer of sustainable stainless steel , and CRONIMET , a specialist in recycled stainless steel , are expanding their collaboration to further secure the sourcing and retain the supply of highquality scrap within Northeastern Europe . Outokumpu has signed an agreement to acquire a 10 % minority interest in CRONIMET North-East GmbH , the holding company for CRONIMET ’ s Northeastern business in Europe , which holds subsidiaries near Outokumpu ’ s European production sites . The continuous supply of high-quality stainless steel scrap is an important factor in maintaining and increasing the company ’ s industryhighest rate of recycled content of 94 % and continuing to achieve the company ’ s ambitious climate targets .
Reducing CO 2 footprint of scrap “ Partnering around our value chain and strengthening our sustainability leadership are key priorities in our strategy . Outokumpu has the lowest carbon footprint in the stainless steel industry , 70 % smaller than the global average *, which is a competitive advantage for us . The better the quality and the closer the scrap is sourced , the smaller the carbon footprint of our production , allowing Outokumpu to decrease the supply chain emissions further . We are excited about this partnership with CRONIMET , as we have a shared ambition on regional development – to accelerate the circular economy in the Northeastern European market area . Together , we can further strengthen our scrap supply and drive a green transition in the industry ”, says Marc-Simon Schaar , Chief Procurement Officer at Outokumpu . Outokumpu and CRONIMET have also agreed to cooperate in areas such as joint innovation and research , with the goal of improving technologies to further reduce CO 2 emissions , lower costs through better predictability and drive waste reduction within the supply chain . Jointly with better scrap quality , this will enable an improvement in Outokumpu ’ s process efficiency . “ This partnership is another step to achieve the sustainable development goals : low CO 2 footprint for stainless production with locally sourced stainless scrap ,” says Jürgen Pilarsky , CEO of CRONIMET Holding GmbH .
Strategic partners As a shareholder , Outokumpu acts as a strategic partner in CRONIMET ’ s Northeastern business , thus , expanding the successful existing collaboration , while CRONIMET retains full operational control of the companies involved . Outokumpu does not see vertical integration into the supply chain of stainless steel scrap as part of its raw material strategy but considers cooperation and partnerships as the way forward . The completion of the transaction is subject to customary closing conditions and regulatory approvals by the competition authorities . The transaction will be carried out as a share sale .
Reference * Global average CO 2 emissions ( 2023 ): 7 kilos of CO 2 e per kg of stainless steel ( based on data provided by CRU and worldstainless ).
44 Stainless Steel World December 2023 www . stainless-steel-world . net