Logistics spending in the U.S. has grown rapidly in recent years. More than 72 percent of the country's freight is transported by road each year, with trucks traveling more than 300 billion miles annually. However, road transport generates a large number of emissions that need to be reduced drastically. Martin Stillger, CEO of thyssenkrupp Materials Services, evaluates alternative drives and their relevance for the logistics industry:

"As one of the world’s leading mill-independent materials distribution and service providers, we are aware of our great responsibility to reduce greenhouse gas emissions. We have set ourselves the ambitious goal of operating on a climate-neutral basis by 2030. Part of this involves switching to alternative drives to get our products from A to B in a more climate-friendly way. Thanks to technological progress in recent years, the first alternatives to fossil fuels are ready for use today – and will be scalable in the future.

At thyssenkrupp Materials Services, we are intensively examining the feasibility of possible alternatives for more sustainable road freight logistics in both North America and Europe. Let me give you four examples:             

In California a large proportion of our truck fleet already runs on renewable diesel R99. The engines do not need to be specially converted, but the CO₂ savings are still enormous. In addition, our North American subsidiary, Copper and Brass Sales, is currently testing the use of RNG trucks that run on renewable natural gas. In Germany, the first hydrogen-powered trucks have been operating for us since this year. Our British subsidiary, thyssenkrupp Materials UK, uses trucks that run on hydrotreated vegetable oil (HVO). Compared to conventional diesel, this reduces greenhouse gas emissions by up to 95 percent.      

As you can see: There are many options. Since it is not yet possible to predict which technologies and solutions will ultimately prevail, we are not restricting ourselves to one approach, but are focusing on diversification in the pilot phases, with the aim of expanding the proven options at a later stage."

The sustainability strategy of thyssenkrupp Materials Services is called "BEYOND" and is based on the internationally recognized ESG standards – but goes beyond these requirements. In addition to reducing its own CO₂ emissions, the focus is on developing sustainable products and services for customers that enable them to demonstrably reduce their carbon footprint and increase efficiency.

On April 16, 2024 thyssenkrupp Materials Services and thyssenkrupp Steel Europe signed a Memorandum of Understanding for the purchase of climate-friendly steel. As part of the agreement, the subsidiary of the materials distribution and service provider, thyssenkrupp Schulte, commits to purchasing fixed quantities of C0₂-reduced bluemint® steel with immediate effect. In the following years, the quantities are to increase gradually and the purchase agreement is to run up to and including 2030. thyssenkrupp Schulte will not only supply its own customers in the German domestic market with the CO₂-reduced steel, but will also make it available to other stockholding units in Western and Eastern Europe. The signing underlines the consistent expansion of the sustainable product portfolio. 

Detlef Schotten, CEO of thyssenkrupp Schulte, says: "With the increasing requirements for sustainable business processes, we are seeing growing demand from our customers for CO₂-reduced alternatives. This trend will continue to grow in the coming years. As a materials distributor, we are not just a supplier, but a partner for our customers and support them in their endeavors to become more sustainable. This includes a comprehensive portfolio of products and solutions that create ecological added value. The signing of the Memorandum of Understanding with thyssenkrupp Steel is an important step that underpins our commitment to sustainable material solutions."

Jörg Paffrath, Head of Sales Industry at thyssenkrupp Steel Europe, adds: "In the age of sustainability, partnerships like this are crucial. By signing this Memorandum of Understanding, we are sending a strong signal in favor of a forward-looking industry. Our commitment to CO₂-reduced steel also emphasizes our role as a responsible partner for our customers. We are determined to meet the growing demand for sustainable material solutions and, together with our partners, to make a positive contribution to tackling the global challenges of climate change."

thyssenkrupp Aerospace and the Mecachrome Group, one of the five largest manufacturers of aerospace parts in Europe, have signed a Memorandum of Understanding (MoU) for a five-year extension of their existing long-term partnership. thyssenkrupp Aerospace, part of thyssenkrupp Materials Services, one of the world’s leading mill-independent materials distribution and service providers, will deliver material management solutions to the Mecachrome Group, including the supply of cut-to-size aluminum plates to France and North Africa.

The contract covers a range of services, including optimizing the use of raw materials, logistics planning to anticipate distribution and delivery challenges. It also incorporates purchasing management, specifically managing Conbid, the consolidated material supply process used for Airbus. New additions to the partnership agreement take advantage of the “Materials as a Service” offering from thyssenkrupp Aerospace, especially the use of a digital control tower for highly effective performance and forecast management

The energy transition confronts companies with major challenges. Renewable energies and energy-efficient operations have become a key economic factor. The new energy monitoring tool toii®.Energy from thyssenkrupp Materials IoT, a spin-off from thyssenkrupp Materials Services, supports manufacturing companies in optimizing their energy efficiency and achieving their sustainability goals.

Transparency through energy measurement

With the new energy monitoring tool toii®.Energy, software developer and digitalization service provider thyssenkrupp Materials IoT is expanding the range of services offered by the Industrial Internet of Things (IIoT) and Manufacturing Execution System (MES) platform toii®. The integrated tool forms the basis for successful energy management and creates transparency in manufacturing companies with regard to the power consumption of machines and plants. Previously, it was unclear how much power the machines were consuming and when peak loads were reached, but now this data is visible and can even be associated with individual orders and products. In this way, toii®.Energy supports companies in achieving their own sustainability goals and significantly reducing operational energy costs. "Thanks to our digitalization expertise, we create transparency on the shop floor, make energy consumption visible across all locations and identify potential savings – a crucial basis for effective energy management," says Sebastian Lang, CEO of thyssenkrupp Materials IoT.

• The facility will specialize in addressing key elements of the future of the automotive industry (sustainability and electromobility) and offer exclusive services to satisfy the production of light vehicles.

• The investment for the creation of this new service center, which will incorporate around 65 new jobs, is 37 million USD.

• With this, thyssenkrupp Materials Services, a global provider of materials and related services, has so far deployed a total investment of more than 100 million USD in North America in the last 15 months.

• The new site in San Luis Potosí joins the other three centers in Mexico.

thyssenkrupp Materials de México, the leading company in the commercial area of the same name, inaugurated its new service center in San Luis Potosí, Mexico, on January 25, 2024. In total, the holding company thyssenkrupp Materials Services, one of the world’s leading mill-independent materials distribution and service providers, invested 37 million USD that will lead to the creation of around 65 new jobs. One of the main objectives of this site is to have a decisive impact on the future viability of the automobile supply industry, which has grown significantly in the region in recent years.