Ovako signs groundbreaking partnership deal with FNsteel to boost the low carbon production of premium processed wire rod in Europe

Ovako and FNsteel has signed a major partnership, starting in 2025, to enhance Europe's wire rod production with a focus on reducing carbon intensity, leveraging Ovako's advanced manufacturing at the Smedjebacken mill. 

Ovako, the Swedish pioneer in sustainable steel production, has signed a major partnership with Netherlands company FNsteel to revolutionise the environmental footprint of premium processed wire rod supplied to Europe’s automotive, construction and engineering sectors. This strategic partnership will see Ovako’s Smedjebacken mill managing the production flow of the low carbon footprint steel raw material used by FNsteel to manufacture premium wire rod through the company’s processing facility. The contract will last for a minimum of two years, commencing in 2025.

FNsteel, which is part of British Steel, is working under the umbrella of the group’s ambitious decarbonisation strategy to drive the industry's shift towards sustainability. To maintain its sustainability momentum during this transitional period, FNsteel has explored collaborations with suppliers of low carbon steel. Ovako emerged as the ideal partner in this venture thanks to its proven track record in sustainability, including fully scrap-based production, efficient processes and the use of fossil-free electricity. The result is that Ovako’s steel has a carbon footprint 80 percent lower than the global average.

“After an extensive period of joint testing and quality assurance measures, we are confident that Smedjebacken is well-equipped to supply FNsteel with substantial volumes of the highest quality”, says Nicholas Källsäter, President Business Unit SmeBox. “Together, FNSteel and Ovako Smedjebacken are well positioned to deliver bespoke processed products with leading CO₂-performance to the market”, concludes Nicholas.

Marcus Hedblom, President and CEO of Ovako, expressed pride in supporting FNsteel's sustainability ambitions. "This collaboration is not just about producing steel. It's about reshaping our industry's future. FNsteel's leadership in driving this change is remarkable, and together, we are setting the course for a more sustainable steel production landscape."

FNsteel's Managing Director, Matthijs van der Schoot, echoed this sentiment, emphasising the company's dedication to decarbonisation. "Our commitment to sustainability is unwavering. This partnership with Ovako is an exciting milestone on our journey, which will allow us to produce low embodied carbon wire rod products from our processing facility. FNsteel is proud to take this step towards a more sustainable future."

About Ovako At Ovako, we specialize in clean, high quality engineering steel tailored to the needs of customers in the bearing, transport, and manufacturing sectors. Our high-quality steel not only ensures lightweight and resilient products but also enables more sustainable and environmentally friendly solutions. Committed to sustainability, we achieved carbon neutral operation in January 2022, with a production based on recycled steel and fossil-free electricity. With 2900 dedicated employees and a global presence spanning over 30 countries, along with approximately EUR 1.1 billion in sales, Ovako, a subsidiary of Sanyo Special Steel and a proud member of Nippon Steel Corporation, stands at the forefront of the steel industry. Our purpose is clear: Together we create steel for a decarbonized society. Discover more about our innovative solutions at www.ovako.com, www.sanyo-steel.co.jp, and www.nipponsteel.com