Automotive manufacturer Gestamp Automoción S.A. and German steelmaker Salzgitter Flachstahl GmbH have signed a memorandum of understanding (MOU) for the former to use low-CO2 steel produced using the SALCOS® process and both companies to investigate the ‘establishment of circularity routes’.

SALCOS® – Salzgitter Low CO2 Steelmaking – is a programme initiated by the Salzgitter Group in order to progressively convert its steel production to hydrogen-based processes by 2026. It aims to achieve almost fully CO2-free production by 2033. This undertaking includes replacing the conventional blast furnace method with direct reduction plants and electric arc furnaces.

Along with the agreement, both companies will investigate the establishment of circularity routes that supply Salzgitter with scrap collected from Gestamp plants for the production of low-CO2 steel.

Gestamp is a long-standing partner of Salzgitter Flachstahl and primarily purchases hot-rolled and cold-rolled flat steel products. These products are mainly dispatched to Gestamp’s locations in Germany but are also shipped to the USA and Argentina.

''The partnership between Gestamp and Salzgitter supplying low-emission steel and the opportunity of establishing circularity routes to return scrap for the production of SALCOS® is a progression towards the decarbonization of the industry, towards a net-zero car.”

Javier Imaz, chief purchasing officer at Gestamp

Javier Imaz, chief purchasing officer at Gestamp, said: “The partnership between Gestamp and Salzgitter supplying low-emission steel and the opportunity of establishing circularity routes to return scrap for the production of SALCOS® is a progression towards the decarbonization of the industry, towards a net-zero car.”

“With our SALCOS® products, we have offered Gestamp the opportunity to supply its customers with low-CO2 steel as from 2026 and become a pioneer of the route to climate-neutral products.”a

Dr. Ralf Koch, head of automotive industry sales at Salzgitter Flachstahl GmbH

Dr. Ralf Koch, head of automotive industry sales at Salzgitter Flachstahl GmbH, added: “With our SALCOS® products, we have offered Gestamp the opportunity to supply its customers with low-CO2 steel as from 2026 and become a pioneer of the route to climate-neutral products.”