CRONIMET, which claims to be the global market leader in stainless steel recycling, and Finnish stainless steel producer Outokumpu have expanded their partnership, as announced in November 2023. The acquisition of a 10 percent minority stake in CRONIMET North-East GmbH by Outokumpu has been completed after the customary closing conditions were met and all regulatory approvals were granted. CRONIMET North-East GmbH holds the shares in the North-East European CRONIMET companies directly and indirectly as an intermediate holding company.
The transaction was carried out in the form of a share purchase. CRONIMET retains full operational control over the companies involved in CRONIMET North-East GmbH. There are no plans to expand the investment in CRONIMET North-East or to invest in other companies of the CRONIMET Group.
Low CO2 footprint during production
With this partnership, CRONIMET and Outokumpu are intensifying their cooperation with the aim of optimizing the raw material cycle and using regionally processed scrap for the production of stainless steel in Europe. “This partnership is a further step towards achieving the goals of sustainable development: a low carbon footprint in the production of stainless steel through the use of regional scrap and shorter transportation routes to Outokumpu’s stainless steel plants,” says Jürgen Pilarsky, CEO of CRONIMET Holding GmbH(More about CRONIMET). “I also see our collaboration as a great opportunity to drive forward our ambitions to reduce CO2 together, as we are both committed to the SBTi goals. In addition, this partnership is an excellent example of the implementation of the 17th UN goal, which aims to build partnerships to achieve the Sustainable Development Goals.”
Cooperation also in innovation and research
Both companies have also agreed to work together on innovation and research. The aim is to work together on technologies that contribute to the decarbonization of stainless steel production. The partnership also focuses on reducing costs through better planning on both sides and reducing waste within the supply chain.
“By expanding our existing successful collaboration, we are ensuring that the recycled steel we purchase is of the best possible quality and is sourced as locally as possible so that we can reduce the carbon footprint of our production. Our climate targets are ambitious and mean that we have to reduce emissions in our supply chain in particular. We can only achieve this in cooperation with our suppliers,” says Marc-Simon Schaar, Chief Procurement Officer at Outokumpu.
Cover photo: Outokumpu