Flat Products and Tier 1 automotive supplier Gestamp have signed a ‘circularity agreement’ to enhance environmental sustainability in the industrial supply chain. The agreement focuses on jointly designing a circularity scheme to improve steel recycling between Gestamp and ArcelorMittal, benefiting their automotive customers.
In March 2022, Flat Products delivered its first XCarb recycled and renewably produced tonnes, using at least 75% scrap steel and 100% renewable electricity via the Electric Arc Furnace route. This reduces the CO2 footprint by around 70% compared to the same product without XCarb substrate.
In July 2022, ArcelorMittal and Gestamp successfully trialed low carbon-emissions steel with high scrap content for car parts, setting a precedent for increased use of low-carbon steel in the automotive industry.
Since December 2022, Gestamp has revealed its roadmap for promoting a circular economy model, focusing on recycled steel. Ensuring the availability of high-quality scrap supports the use of low-carbon emission steels in automotive parts. This integration allows complete life-cycle traceability, addressing the scarcity of this secondary raw material.
Reliable scrap supply chain for low carbon-emissions steel is vital for the decarbonization process. The new agreement provides a supply guarantee to OEMs interested in reduced CO2 steel solutions, achieved through collaboration among supply chain partners, enabling long-lasting CO2 performance in vehicles.
At the Capital Markets Day in June 2023, Gestamp outlined its objectives for sustainable mobility, including reducing metal component weight to lower CO2 emissions. Integrating scrap management for recycling steel scrap contributes to the global goal of net-zero cars.
Ernesto Barceló, Chief ESG Officer, emphasized that using high-quality pre-consumer scrap ensures a circular supply chain and responsible use of natural resources even after decarbonization goals are met.
Paul Brettnacher, CMO ArcelorMittal Europe – Flat Products, expressed delight in the agreement, strengthening environmental sustainability efforts in the automotive sector, and expanding the range of low-carbon emissions steel grades for automotive customers, building on successes like Usibor1500 made with XCarb recycled and renewably produced substrate.
