Cronimet, the world’s leader in recycling stainless steel, and the Finnish stainless steel producer Outokumpu have extended their partnership, as communicated in November 2023. The take-over of a 10 percent minority stake at the Cronimet North-East GmbH by Outokumpu is finalised, after the usual closing conditions were met and all official permissions were sought and granted. As an intermediate holding company, Cronimet North-East GmbH directly and indirectly holds shares in the Cronimet companies in the north-east of Europe.
The transaction was carried out as a sale of shares. Cronimet retains full operational control over the participating companies belonging to Cronimet North-East GmbH. There are no plans to expand shares in Cronimet North-East or shares in other companies belonging to the CRONIMET group.
With this partnership, Cronimet and Outokumpu are strengthening their cooperation with the goal of improving the circular flow of raw materials and utilising regionally processed scrap metals for the production of stainless steel in Europe.
“This partnership is another step towards reaching the goals of sustainable development: a small carbon footprint when producing stainless steel achieved through the use of regional scrap metal and through shorter transport distances to the Outokumpu steel mills”, says Jürgen Pilarsky, CEO of Cronimet Holding GmbH. “I see our cooperation as a great opportunity to pursue our ambition to reduce carbon emissions together, since we both have committed to the SBTI goals. This partnership is also an excellent example of how to implement the 17th UN goal, which aims to establish partnerships to reach sustainability goals.”
Both companies have also decided to work together in innovation and research. Together, they want to work on technologies to decarbonise the production of stainless steel. Lowering the costs through better planning on both sides, as well as reducing waste within the delivery chain, are focus points of the partnership.
“By expanding our existing successful cooperation we guarantee that the recycled steel we purchase has the best possible quality and is produced locally, if possible, so that we can decrease the carbon footprint of our production. Our goals for the climate are ambitious, and this means that above all we have to reduce emissions in our supply chain. This is only feasible through cooperation with our suppliers”, says Marc-Simon Schaar, Chief Procurement Officer at Outokumpu.
