Salzgitter AG has expanded its long-standing cooperation with Volvo Cars through a closed-loop recycling partnership that strengthens circular economy practices between the two companies.
Under the initiative, known as ScanLoop, Salzgitter continues to supply high-quality flat steel to Volvo Cars’ body components plant in Olofstrom, while steel scrap generated during the stamping process is collected, segregated and returned to Salzgitter Flachstahl GmbH for remelting and reuse in new steel production. Steel and aluminium off-cuts are separated into dedicated material streams and compressed to optimize transport efficiency.
Rail freight plays a central role in the project. Instead of returning empty, trains transport scrap back to Salzgitter, maintaining a closed material loop. The first shipment, comprising 25 wagons over a 545-metre train length, recently arrived at Beddingen station. Despite a distance of around 700 kilometres, the route was completed in about one and a half days, supported by high-capacity interoperable locomotives running on carbon-neutral electricity.
Salzgitter said the project demonstrates how circular material flows and rail-based logistics can reduce emissions while delivering operational and sustainability benefits across the European steel and automotive value chain.
Salzgitter is one of Germany’s leading steelmakers, with crude steel capacity of about 6.4 mln tons.
