The Salzgitter Group and Volvo Cars are deepening their collaboration with a closed-loop recycling initiative set to launch in 2026. Under the expanded partnership, Salzgitter AG will purchase significant volumes of high-quality steel scrap from Volvo Cars’ body parts plant in Olofstrom, Sweden, scrap generated from steel originally supplied by Salzgitter.
The collected scrap will be returned to Salzgitter Flachstahl GmbH and reintegrated into production without quality loss or down-cycling. This circular approach aligns with Salzgitter’s SALCOS, Salzgitter Low CO2 Steelmaking transformation program, which uses electric arc furnaces powered by green electricity to produce low-carbon steel.
A key component of the initiative is a new, efficient rail shuttle system that replaces current single-wagon shipments. This optimized logistics setup will transport steel coils to Sweden and return with scrap, eliminating empty runs, reducing emissions, and maximizing capacity in both directions. Despite the 700-kilometer distance between sites, the use of high-capacity, interoperable locomotives and 100pct climate-neutral electricity ensures an efficient, low-emission material cycle that supports both companies’ sustainability goals.