Closing the loop: Salzgitter Group and Volvo Cars launch closed loop partnership

• The Salzgitter Group is a serial supplier of flat steel to Volvo Cars’ body parts plant in southern Sweden
• In 2026, steel scrap will be returned to steel production in Salzgitter
• Recycling and closed loops are vital components of the Group’s circularity strategy
• Logistics partner DB Cargo ensuring efficient transport – empty runs a thing of the past

The Salzgitter Group and Volvo Cars are expanding their partnership: in 2026, significant amounts of steel scrap from the Volvo Cars’ body parts plant in Olofström in southern Sweden will be sold to the Salzgitter AG steelworks.
 
The Salzgitter Group supplies high-quality flat steel to the car body parts plant. Next year, the Group will also take over significant quantities of steel scrap generated there and will feed it back into the production process at Salzgitter Flachstahl GmbH. Consequently, the material will remain in the cycle – without down-cycling or any quality losses.
 
High-quality steel scrap will also play an increasingly vital role in the SALCOS^® - Salzgitter LOW CO₂ Steelmaking transformation program. This material can be melted down in the Salzgitter Group's electric arc furnaces harnessing green electricity and subsequently processed into new low CO₂ steel products.
 
Sandrina Sieverdingbeck, Managing Director of DEUMU, comments: “This cooperation is a clear confirmation of our circularity strategy. It demonstrates how industrial partnerships can contribute to resource efficiency and the decarbonization of the value chain. In line with our motto: Partnering for transformation. This closed loop is also further proof of the sound cooperation between various Group companies such as Salzgitter Mannesmann Handel, DEUMU and Salzgitter Flachstahl.”

The consistent use of rail freight transport is a key component of the concept: The Salzgitter Group already delivers the steel coils to Sweden by train – however, this is currently done using single wagon freight consignments. In future, the steel will be delivered and the scrap returned by way of a direct, rapid and sophisticated shuttle concept featuring short transit times and maximum capacity utilization on the outbound and return journeys. Empty runs are eliminated, improving efficiency even more.
 
Despite the approximately 700-kilometer distance between the two locations, this concept ensures an efficient and low-emission material cycle. This is also enabled by the use of powerful, interoperable locomotives, achieving high train loads, in addition to the use of 100% climate neutral electricity for traction.