Ferrexpo plc, a mining company with major assets in Ukraine, and Salzgitter Flachstahl GmbH, a subsidiary of German steel company Salzgitter AG, have announced that they will strengthen their cooperation.
According to a stock exchange announcement, the companies signed a memorandum of understanding for the supply of direct reduced iron (DRI) pellets for the production of low-carbon steel.
It is specified that the memorandum on the use of pellets in SALCOS (Salzgitter Low CO2-Steelmaking), a production facility of Salzgitter, provides for the implementation of a decarbonization program, joint development of strategies for the use of raw materials within environmentally friendly supply chains.
“We have agreed on the terms of our cooperation for the future. Ferrexpo’s DR pellets can significantly reduce emissions in steel production under the SALCOS program,” explained Jaroslawa Blonska, Acting Marketing Director at Ferrexpo.
Gerd Baresh, Technical Director of Salzgitter Flachstahl GmbH, expressed his hope for intensified cooperation in the context of the SALCOS program: “This agreement will help us reduce carbon emissions in our supply chains and stimulate the production of environmentally friendly steel.”
The SALCOS program is expected to be technically completed by 2033.
Ferrexpo is an iron ore company with assets in Ukraine. Ferrexpo owns 100% of shares in Poltava Mining, 100% of shares in Yeristovo Mining and 99.9% of shares in Bilanivsky Mining.
