Boosting circularity in the automotive supply chain
ArcelorMittal and Gestamp sign agreement to implement a circularity scheme that enhances steel recycling between the two companies
Aimed at strengthening environmental sustainability throughout the industrial supply chain, ArcelorMittal and Gestamp have teamed up on a circularity agreement. It involves implementing a scheme to use recycled steel, allowing automotive customers to reduce emissions over the vehicle’s lifespan.
In July 2022, ArcelorMittal and Gestamp successfully trialed the use of both low carbon emissions and high scrap content steel. This was the first publicly announced cooperation of its kind, encouraging the use of such materials across the automotive industry.
Since December 2022, Gestamp has focused on extending its circular economy model and has increasingly used recycled steel. Securing the availability of recycled steel will further encourage its use for automotive parts.
Enhancing the reliability of the scrap supply chain for low carbon-emissions steel products is an important part of the decarbonization process. The new agreement offers the supply guarantee to the OEMs who want to use reduced carbon steel solutions. Both companies recognize that reliability is best achieved through collaboration among supply chain partners.
Gestamp presented its objectives to contribute to sustainable mobility for future generations at its Capital Markets Day in June 2023. It will support OEMs in the short-term by reducing the weight, and ultimately the emissions, of metal components. In the longer-term, the integration of scrap management for recycling steel contributes to the global goal of a net-zero car.
Speaking about the agreement, Paul Brettnacher, CMO at ArcelorMittal Europe, said: “This agreement with Gestamp 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.”