The Salzgitter Group and Volvo Cars are expanding their partnership to create a closed-loop steel recycling system. Starting in 2026, Salzgitter will purchase substantial amounts of steel scrap from Volvo Cars' Olofström plant in southern Sweden.

This high-quality steel scrap will be returned to Salzgitter's production, ensuring the material remains in circulation without any down-cycling or quality loss. The move supports Salzgitter's SALCOS® low CO2 steelmaking transformation program, which uses electric arc furnaces powered by green electricity.

The collaboration will utilize efficient rail freight for both steel deliveries to Sweden and scrap returns, eliminating empty runs and significantly reducing emissions over the 700-kilometer distance. This action advances resource efficiency and decarbonization of the value chain.