Marking a pivotal shift towards sustainable industrial practices, ArcelorMittal and Gestamp, a leading Tier 1 automotive supplier, recently publicized a circular pact. This unique alliance aims to develop a circularity scheme with a special focus on promoting steel recycling between both corporations, promising substantial advantages for their clientele in the automotive industry.
March 2022 witnessed the pioneering delivery of XCarb by Flat Products – an eco-conscious product originating from the Electric Arc Furnace route. Utilizing not less than 75% scrap steel and purely renewable electricity, this steel-making process significantly curtailed the CO2 footprint by approximately 70%, compared to conventional counterparts.
As early as July 2022, ArcelorMittal and Gestamp successfully experimented with low carbon-emission steel and high scrap content to manufacture car components. This innovative venture held considerable significance for vehicle production, not just in Spain but across the European continent. Never before had such a cooperative venture been publicly declared, thereby creating a promising pathway for the enhanced usage of low-carbon emission steel within the automobile sector.
Since December 2022, Gestamp has diligently worked towards elucidating its strategy to broaden the scope of its business circular economy model, placing significant emphasis on recycled steel usage. Assuring the continuous availability of high-quality scrap remains crucial for the increased usage of low-carbon emission steel within automotive components. By integrating scrap management into the corporate strategy, Gestamp allows for meticulous life-cycle traceability, spanning from the collection and sorting to the reuse of quality steel scrap within its production chain.
The most recent collaboration in June 2023 has served to fortify the reliability of the scrap supply chain for low-carbon-emission steel products, an integral facet of the decarbonization process. The freshly signed agreement guarantees a steady supply to OEMs who are keen on incorporating reduced CO2 steel solutions. Both corporations concur that reliability of supply is best ensured through inter-company collaborations, which would facilitate automotive customers to maintain the CO2 efficiency of their vehicles throughout their production life.
Ernesto Barceló, Chief ESG Officer, endorsing this approach said, “The return of high-quality pre-consumer scrap, with traceability of its origin, quality, and processing, for the production of low emission steel products. Allows Gestamp to secure the circular supply chain to our customers with secondary raw materials. Furthermore, this will grant us to keep responsibly using natural resources even after decarbonization objectives have been achieved.”
Paul Brettnacher, CMO of ArcelorMittal Europe – Flat Products, automotive, packaging, and electrical steels, expressed his enthusiasm for the pact. Speaking about the agreement, Paul Brettnacher, CMO of ArcelorMittal Europe – Flat Products, automotive, packaging, and electrical steels, said: “We are delighted to have signed this agreement with Gestamp, which strengthens the work we are doing together on environmental sustainability in the automotive sector. This step is a new milestone for ArcelorMittal in our work to offer our automotive customers a broad range of low-carbon emissions steel grades, after other successes such as the commercialization of Usibor 1500 made with XCarb recycled and renewably produced substrate,” he elaborated.
The ArcelorMittal-Gestamp alliance significantly propels the global mission towards achieving a net-zero carbon emission automobile, underscoring the paramount importance of nurturing strategic partnerships and judicious utilization of resources for shaping a greener future.
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