Salzgitter Group and Volvo Cars have established a closed-loop partnership to enhance circularity and reduce carbon emissions in steel production. Starting in 2026, steel scrap generated at Volvo’s body parts plant in Olofström, Sweden, will be returned to Salzgitter’s steelworks in Germany for recycling into new flat steel products.
This initiative builds on Salzgitter’s existing supply of high-quality flat steel to Volvo and supports its SALCOS® low-carbon steelmaking program. The scrap will be melted in electric arc furnaces powered by green electricity, maintaining material quality without down-cycling.
The partnership also includes optimized rail logistics: steel is delivered to Sweden, and scrap is returned via a direct shuttle system, eliminating empty runs and maximizing efficiency over the 700 km route.
