thyssenkrupp Materials Services and Stegra agree on significant multi-year non-prime steel supply

thyssenkrupp Materials Processing Europe, part of thyssenkrupp Materials Services, has signed an agreement with Stegra for the delivery of steel from Stegra’s site in Boden, Sweden. In the multi-year agreement, thyssenkrupp Materials Processing Europe will acquire significant amounts of non-prime steel from Stegra to supply its customers in various industries across Europe. First deliveries are expected to start in 2027. The total tonnage of the agreement will be in the high-six-digit range.

“At thyssenkrupp Materials Processing Europe, we have the customer base, the logistics capabilities and the processing network to handle these large amounts of steel,” explains Heather Wijdekop, CEO of the Processing business unit at thyssenkrupp Materials Services. “At the same time, we are also teaming up with Stegra to support the ramp-up of their large-scale facilities in Boden and their efforts to decarbonize the steel industry.”

Stegra is currently building a new steel production facility in Boden, Sweden, which will produce steel with green hydrogen from renewable electricity. Due to the nature of steel production, steel mills produce a certain amount of non-prime steel: material that doesn’t meet the highest quality standards that certain applications may require, but is still a strong and durable material eligible for various uses. As a result, non-prime steel makes up a relevant portion of the steel market in Europe.

“A partner for non-prime steel is important for the ramp-up of our steel mill and we see this as the start of a long-term partnership with thyssenkrupp Materials Services as a key player in the market,” says Stephan Flapper, Head of Commercial at Stegra. “Together we can drive an even stronger pull for steel products made via the hydrogen route.” 

Although Stegra’s Boden site uses only hydrogen and renewable electricity, the non-prime steel purchased by thyssenkrupp Materials Services in the course of this agreement will not be considered to be CO₂-reduced as Stegra will sell the respective certificates to other customers in the prime steel market.