
Photo courtesy of ArcelorMittal
Luxembourg-based ArcelorMittal and Madrid-based steel service center operator Gonvarri Industries say they have signed a memorandum of understanding (MoU) to cooperate to supply low-carbon steel to the automotive market.
The agreement is between the ArcelorMittal Europe – Flat Products business unit of the steelmaker and Gonvarri, which says it suppliers around 5 million tons annually of processed flat steel to its customers in Europe.
ArcelorMittal Europe has a target to reduce its CO2 emissions by 35 percent by 2030 and to reach carbon neutrality by 2050. In 2021, the company launched XCarb, a brand for its low- and zero-carbon products. This includes XCarb “recycled and renewably produced” steel made using what ArcelorMittal calls “a very high proportion of steel scrap” and 100 percent renewable electricity.
In 2022, ArcleorMittal made several moves to bolster its presence in the scrap recycling market in Europe, by purchasing scrap firms or assets in the United Kingdom, Germany, the Netherlands and Poland.
The low-carbon steel MoU was signed by Gonvarri Industries Executive Chairman Jon Riberas and ArcelorMittal Europe – Flat Products CEO Yves Koeberle in Madrid in early January.
In 2020, Gonvarri Industries committed to reducing its Scope 1 CO2 emissions by 50 percent by 2030 and to reaching carbon neutrality by 2050. Working with ArcelorMittal is being positioned as part of the company’s strategy to accelerate its reduction in Scope 3 emissions (indirect CO2 emissions produced in the company’s supply chain).
“The signing of the agreement with our valued customer and partner Gonvarri is the culmination of months of collaboration, with the objective of further reducing CO2 emissions and exploring every opportunity we have to strengthen the sustainability of our businesses,” Koeberle says.
Riberas of Gonvarri Industries says, “We have a clear commitment with Gonvarri's stakeholders and society, making our different sectors’ activities and supply chains we are involved in more sustainable, focused permanently on how to add value to our customers, pursuing support to their decarbonization targets, too.”
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