Germany-based steelmaker Salzgitter Group is expanding its partnership with the Swedish automotive manufacturer Volvo Cars by establishing a closed-loop. The steelmaker, which already supplies high-quality flat steel to Volvo Cars’ body plant in Olofström, has announced that it will source significant quantities of steel scrap from the given plant in 2026 for its steelworks.
The steel scrap generated at the Olofström plant will be fed into the production of Salzgitter Flachstahl GmbH, keeping the material in the cycle without any quality loss.
Salzgitter delivers flat steel to Sweden by train, using a single-wagon system. In the future, the steel will be delivered to Volvo Cars and will return as scrap via a direct and fast sophisticated shuttle concept with short transit times and maximum capacity utilization. Despite the approximately 700-kilometer route between the two locations, low-emission transport cycle will be created thanks to the use of powerful, interoperable locomotives that can carry high train loads and the use of 100 percent climate-neutral electricity for traction.