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.

• 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

[Translate to Englisch:]

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 product. 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.