Steel Business Multi-Year Supply of Large Quantities of Non-Prime Steel Agreed

From Bernd Maienschein | Translated by AI 1 min Reading Time

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Thyssenkrupp Materials Processing Europe, as part of Thyssenkrupp Materials Services, has signed a contract with Stegra for the supply of second-choice steel from the Stegra plant in Boden (Sweden).

Finished products are held by Thyssenkrupp Materials Processing Europe. The Essen-based company will in the future source large quantities of non-prime steel (second choice) from the Swedish manufacturer Stegra.(Image: Thyssenkrupp Materials Services)
Finished products are held by Thyssenkrupp Materials Processing Europe. The Essen-based company will in the future source large quantities of non-prime steel (second choice) from the Swedish manufacturer Stegra.
(Image: Thyssenkrupp Materials Services)

The Swedish scale-up company Stegra, founded only in 2020, is currently building its first facility for large-scale production of green hydrogen, green iron, and green steel in Boden in northern Sweden. Thyssenkrupp Materials Processing Europe has now signed a multi-year contract with the Swedes for the supply of non-prime steel, aiming to supply customers in various industries across Europe. It is reported that the first deliveries are expected to begin in 2027, and the total contractually agreed volume is "in the high six-figure tonnage range."

At Thyssenkrupp Materials Processing Europe, we have the customers, logistics, and processing network to handle these large steel volumes.

Heather Wijdekop, CEO GB Processing at Thyssenkrupp Materials Services

To support the ramp-up of the large facility in Boden and Stegra's efforts to decarbonize the steel industry, the Essen-based materials trader and service provider is collaborating with the Swedes. The non-prime steel, meaning second-choice steel, may not meet the highest quality standards but is still strong, durable, and suitable for various purposes, it is said. This material constitutes a significant portion of the European steel market.

Paving the Way for Hydrogen

"A partner for non-prime steel is important for the ramp-up of our steel plant, and we see this as the beginning of a long-term partnership with Thyssenkrupp Materials Services as a key player in the market," says Stephan Flapper, Head of Commercial at Stegra. "Together, we can further boost the demand for steel products manufactured through the hydrogen pathway."

Although the Stegra site in Boden only uses hydrogen and renewable energy, the second-choice steel purchased by Thyssenkrupp Materials Services under this agreement will not qualify as CO2-reduced because Stegra will sell the corresponding certificates to other customers in the prime steel market.

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