Outokumpu and CRONIMET expand their partnership to take circularity to new heights – securing access to high-quality scrap near Outokumpu’s sites in Europe
Outokumpu Oyj
Press release
November 7, 2023 at 8.50 am EET
Outokumpu and CRONIMET expand their partnership to take circularity to new heights – securing access to high-quality scrap near Outokumpu’s sites in Europe
Outokumpu, the global leader in sustainable stainless steel, and CRONIMET, the global leader in recycled stainless steel, are expanding collaboration to further secure the sourcing and retain the supply of high-quality scrap within Northeastern Europe. Outokumpu has signed an agreement to acquire a 10% minority interest in CRONIMET North-East GmbH, the holding company for CRONIMET’s Northeastern business in Europe, holding subsidiaries in the surroundings of Outokumpu's European production sites. The continuous supply of high-quality stainless steel scrap is an important factor in maintaining and increasing the industry-highest rate of recycled content of 94% and continuing to achieve the company’s ambitious climate targets.
“Partnering around our value chain and strengthening our sustainability leadership are key priorities in our strategy. Outokumpu has the lowest carbon footprint in the stainless steel industry, 70% smaller than the global average*, which is a competitive advantage for us. The better the quality and the closer the scrap is sourced, the smaller the carbon footprint of our production, allowing Outokumpu to decrease the supply chain emissions further. We are excited about this partnership with CRONIMET, as we have a shared ambition on regional development – to accelerate the circular economy in the Northeastern European market area. Together, we can further strengthen our scrap supply and drive green transition in the industry”, says Marc-Simon Schaar, Chief Procurement Officer at Outokumpu.
Recycled steel in the scrap yard of Outokumpu’s mill in Tornio, Finland. Our mill in Tornio is the largest material recycling center in Europe.
Outokumpu and CRONIMET have also agreed to cooperate in areas such as joint innovation and research with the goal to improve technologies to further reduce CO2 emissions, lower costs through better predictability and drive waste reduction within the supply chain. Jointly with better scrap quality this will enable an improvement in Outokumpu’s process efficiency.
“This partnership is another step to achieve the sustainable development goals: low CO₂ footprint for stainless production with locally sourced stainless scrap,” says Jürgen Pilarsky, CEO of CRONIMET Holding GmbH.
As a shareholder, Outokumpu acts as a strategic partner in CRONIMET’s Northeastern business, thus, expanding the successful existing collaboration, while CRONIMET retains full operational control of the companies involved. Outokumpu does not see vertical integration into the supply chain of stainless steel scrap as part of its raw material strategy but considers cooperation and partnerships as the way forward.
The completion of the transaction is subject to customary closing conditions and regulatory approvals by the competition authorities. The transaction will be carried out as a share sale.
*) Global average CO₂ emissions (2023): 7 kilos of CO₂e per kg of stainless steel (based on data provided by CRU and worldstainless).
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669
Media: Päivi Allenius, VP – Communications & Brand, tel. +358 40 753 7374 or Outokumpu media desk, +358 40 351 9840
Outokumpu Oyj
Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs approximately 8,500 professionals in close to 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com
