Swedish automotive manufacturer Volvo Cars and German steelmaker Salzgitter AG have announced that they have completed the first shipment under their closed-loop recycling partnership known as ScanLoop. The initiative is designed to strengthen circularity and reduce emissions across the steel value chain.
Under the agreement, Salzgitter continues to supply high-quality flat steel to Volvo Cars’ body parts plant in Olofström, southern Sweden. During the stamping process, steel scrap is collected, separated by material type, and compressed into dense cubes to improve transport efficiency.
Closed-loop system keeps material within steel value chain
Rather than returning empty, trains traveling back to Germany are loaded with the processed scrap and transported to Salzgitter Flachstahl GmbH. There, the material is remelted and converted into new high-quality steel grades, keeping the steel within a closed material loop and reducing the need for primary raw materials.
The first shipment consisted of a 545 meter-long train carrying 25 scrap wagons to Beddingen station.
Rail transport reduces logistics-related emissions
Rail transport is a central component of the ScanLoop concept. Despite the roughly 700-kilometer distance between the Swedish and German facilities, the journey takes about one and a half days and is powered entirely by carbon-neutral electricity.
The companies noted that this approach significantly lowers transport-related emissions while demonstrating the role of rail infrastructure in supporting circular industrial supply chains.
