24 May 2024
Ferrexpo
plc
("Ferrexpo"
or the "Group")
Ferrexpo and Salzgitter
to
further green steel co-operation
Ferrexpo plc (LSE: FXPO) and
Salzgitter Flachstahl GmbH - a subsidiary of Salzgitter AG -
announce the consolidation of their long-standing
cooperation. The companies
have signed a Memorandum of Understanding ("MoU") for the supply of
high-quality direct reduction iron ore (DR) pellets for low-carbon
steel production.
Highlights
- Memorandum of Understanding for the
use of high-quality iron ore pellets in SALCOS®, Salzgitter's operational
decarbonisation programme
- Joint development of raw material
feed strategies and green supply chains
Yaroslavna
Blonska, Acting Chief Marketing Officer of Ferrexpo,
commented:
"Ferrexpo and Salzgitter have been working
together since 2016. As Europe transitions to greener steel
production, it is gratifying to have agreed terms for
our cooperation well into the future.
Ferrexpo's DR pellets can lower steel making emissions
significantly as part of the SALCOS®
programme. The agreement with
Salzgitter reinforces Ferrexpo's position as a leading supplier in
Europe and will also benefit the wider Ukrainian economy during
a challenging time and subsequently during
the post-war reconstruction
period."
Gerd Baresch, Technical Director of Salzgitter
Flachstahl GmbH,
commented:
"We are delighted to continue our
long-standing cooperation with Ferrexpo and look forward to
intensifying these activities within the context of our
SALCOS® transformation programme. Ferrexpo is a strong
partner in the decarbonisation of our production processes and
logistics chains. The agreement reached will
help us to reduce carbon emissions along the supply chains and
drive green steel production forward."
Ferrexpo's DR pellets will be used
as part of the SALCOS® programme, in which Salzgitter is
incrementally converting its steel production to hydrogen-based
processes and technologies. Steel production using
SALCOS® requires iron ore pellets of very high quality
and this MoU demonstrates Salzgitter's confidence in the high
quality and availability of Ferrexpo's
products. The SALCOS® programme will be completed from a
technical perspective by 2033.
As part of the MOU, Ferrexpo and
Salzgitter Flachstahl GmbH will also seek to identify the most
suitable raw material feed strategies for hydrogen-based steel
production in direct reduction plants as well as optimising their
green logistics chains, freight and inventory
management.
Ferrexpo and Salzgitter Flachstahl
management at Salzgitter's operations in Germany
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From left to
right: Lucio Genovese (Executive Chair of Ferrexpo), Yaroslavna
Blonska (Acting Chief Marketing Officer of Ferrexpo) and Gerd
Baresch (Technical Director of Salzgitter Flachstahl
GmbH)
|
For further information, please
contact:
Ferrexpo plc is a Swiss
headquartered iron ore company with assets in Ukraine and a premium
listing on the London Stock Exchange in the FTSE 250 index (ticker
FXPO). The Group produces high-grade iron ore pellets, which are a
premium product for the global steel industry and enable reduced
carbon emissions and increased productivity for steelmakers when
the Group's iron ore pellets are converted into steel, compared to
more commonly traded forms of iron ore. Ferrexpo's operations have
been supplying the global steel industry for over 50 years. Before
Russia's invasion of Ukraine in February 2022, the Group was the
world's third largest exporter of pellets to the global steel
industry. The Group has a customer base comprising of premium steel
mills around the world. For further information, please
visit www.ferrexpo.com.
Salzgitter AG ranks as one of
Germany's leading steel and technology groups. As a pioneer in the circular economy, they focus on
sustainable innovation and on transforming products and processes
within the steel production, steel processing, trading and
technology sectors. With the "Salzgitter AG 2030" strategy and
anchored in the principle of "Pioneering for Circular Solutions",
the Group is setting new benchmarks in the industry. Salzgitter's
aspirations are realised through strong initiatives and programmes
such as SALCOS® - Salzgitter Low
CO2 Steelmaking. Through
partnerships, and
in networks, Salzgitter is
actively driving the process of development
towards a circular economy. With around
25,000 employees worldwide at 160 national and international
subsidiaries and associate companies, they live up to their global
aims for growth, profitability and their pioneering
position. In the financial year 2023, they
generated external sales of around € 11 billion, with a crude steel
capacity of 7 million tons. For further information, please
visit http://www.salzgitter-ag.com