First green steel partnership established across the automotive value chain

Swiss Steel Group, Andernach & Bleck, Heine + Beisswenger, Magnet-Schultz and ZF jointly reduce CO2 emissions

The Swiss Steel Group, with its Steeltec plant, the bright steel manufacturer Andernach & Bleck GmbH & Co. KG, the steel trading company Heine + Beisswenger Group, the electromagnet manufacturer Magnet-Schultz GmbH & Co. KG and the technology group ZF Friedrichshafen AG have founded a Green Steel Partnership. This is the first time that five partners have agreed to reduce their CO2 emissions as part of a pilot project along the entire value chain in the automotive industry.

With the project partnership, the companies aim to significantly reduce the product carbon footprint for an electromagnetic actuator (selector actuator, commercial vehicle transmission actuator) used in the automotive/truck sector. Based on CO2-optimized steel production in the electric steel plant at Swiss Steel, improved material and energy use in the drawing process at Andernach & Bleck, the use of low-CO2 pre-processing and logistics by Heine + Beisswenger, adapted turning and assembly processes at Magnet-Schultz and ZF, the partners are able to tap significant reduction potential. Thanks to a holistic approach across all purchased parts, including the complete assembly of the actuator, the end customer can obtain reliable information on the CO2 content of the components used.

For the calculation of the values, all partners involved make their product-related CO2 balances transparent. The savings achieved are based both on measures taken as part of the respective sustainability strategies and on product-related optimization processes. The 2019 CO2 emissions for the Dial Actuator product are compared with the current values based on measurements from a trial delivery.

In terms of products, a saving of 35 percent or 710 kilograms of CO2/ton of steel used could be achieved in the total value added in 2022 compared with 2019. In terms of the annual volume of 300,000 dial actuators and the associated core, which is made of steel, it accounts for around 35 tons of CO2 savings per year. This corresponds to approx. 66 Berlin-London flights or the CO2 emissions of 25 cars per year. The additional measures planned by all partners will reduce CO2 emissions by a further 41% or 540 kilograms of CO2/ton in 2024 compared with 2022.

"The steel partnership initiated by Heine + Beisswenger supports the transformation of the German and European steel industry. We want to show that we can also achieve further CO2 savings on the raw material and supplier side for our customers in the automotive value chain. At H+B, we use new solutions of power generation and energy savings, invest in low CO2 logistics (including alternatively powered trucks) and production processes. In addition, the transformation of the steel industry requires shared responsibility between business and politics," said H+B Group CEO Rainer Lindner at the launch of the partnership.

"For us as the Swiss Steel Group, reducing the steel industry's carbon footprint is a social obligation that we face with conviction. The green steel partnership is another area where we can help our customers reduce the CO2 values of their products. Our products make a decisive contribution to this - for example, we already save around 90% of emissions per ton of steel produced in Emmenbrücke compared with the industry average. In addition to production in electric arc furnaces and the use of steel scrap, the use of energy from Swiss hydropower at our Emmenbrücke plant will soon also lead to a significant reduction in CO2 emissions. This makes Swiss Steel Group a champion in sustainability," said Frank Koch, CEO of Swiss Steel Group.

"All the companies involved have already made responsible use of primary energies in the past and have worked to optimize their energy and CO2 balances. This partnership project to document and reduce CO2 emissions based on a selected product is unique to date. We are proud to make a significant contribution within the value chain with our drastically reduced CO2 values (2019 to 2022 reduced by approx. 75-85% depending on the article). Andernach & Bleck is able to show a carbon footprint for all articles produced," says Carsten Bleck, CEO of Andernach & Bleck.

"The open and transparent exchange between all partners created a very positive dynamic in working on the topics, driven by the common goal of avoiding and saving CO2. In addition, the exchange of experience and learning effect has been very helpful in the conception and reporting of the Footprint values," said Johann Erbe, Head of Materials Management at Magnet-Schultz.

"With the introduction of low-CO2 production processes, the steel industry is undergoing a profound transformation. Worldwide, ZF directly and indirectly processes around 2.5 million tons of steel per year; this illustrates the importance of steel products in reducing ZF's environmental footprint. Innovative companies with sustainable concepts are in demand at all stages of the supply chain. Through our participation in the Green Steel Partnership, we are actively supporting the transformation and have experienced a very focused and successful collaboration," says Daniele Pontarollo, Head of Group-wide Materials Management at ZF. "Our goal for carbon neutrality from 2040 will have an impact on the upstream supply chain. We are convinced that only through creative collaboration with sustainable suppliers can we significantly and sustainably reduce emissions."

Steeltec - a company of the Swiss Steel Group - produces carbon, stainless and free-cutting steels as well as special bright steel for the automotive, engineering, hydraulics and apparatus construction industries. The largest production site is in Emmenbrücke, Switzerland, with a steel mill, a rolling mill, two bright steel mills and around 750 employees. A further 250 people are employed in production and sales units in Germany, Denmark, Sweden and Turkey. Steeltec recycles 650,000 tons of steel scrap annually for the production of long steel products. This corresponds to around half the volume of scrap generated in Switzerland and makes Steeltec one of the largest players in the Swiss recycling economy. The company is part of the Lucerne-based Swiss Steel Group with around 10,000 employees in more than 30 countries.

Andernach & Bleck produces and perfects molds that meet the very highest standards. Whether on water, on land or in the air - bright steel "Made in Hagen" can be found in every area of application on this earth. Since 1903, Andernach & Bleck has been one of the leading companies in the bright steel industry - worldwide. We employ about 200 people, all with different lifestyles and cultures. But one thing unites us: bright steel is our DNA. From manufacturing, to sales, to management - everyone loves the diverse shapes that meet the very highest standards on state-of-the-art equipment.

Heine + Beisswenger has been one of the largest family-run integrated trading and production companies within the steel and metal sector in Germany since 1901. In addition to its headquarters in Fellbach near Stuttgart, the Group operates in Dieburg, Langenzenn, Elsendorf, Trossingen, Pforzheim and Hermsdorf and has two production sites in Hermaringen and Adelmannsfelden. The materials range comprises over 25,000 articles in the bar sector (long products) in various materials, profiles and dimensions. The materials traded are mainly free-cutting steel, bright steel, unalloyed steel, engineering steel, stainless steel, rolled steel, tool steel, HSQ steel (machining steel), brass, aluminum and copper. In addition to the machining industry, the main sales markets are automotive suppliers and manufacturers, mechanical engineering and many other steel processing producers.

Magnet-Schultz: We are specialists for electromagnetic actuators, sensors and valve technology. We develop individual high-tech solutions together with our customers from the aerospace, automotive, electromechanical, hydraulics, medical technology, pneumatics and many other industries. As an independent family-owned company in its 4th generation, we stand for experience, know-how, sustainability and the highest quality. With a high vertical range of manufacture and 2,700 employees at our locations in Europe, the USA and China, we are your reliable and global partner for your innovation today and in the future. Our recipe for success for over 100 years has been: "We make our customers successful!"

ZF is a globally active technology group and supplies systems for mobility in passenger cars, commercial vehicles and industrial technology. ZF makes vehicles see, think and act: In the four technology fields of Vehicle Motion Control, Integrated Safety, Automated Driving, and Electromobility, ZF offers comprehensive product and software solutions for established vehicle manufacturers as well as for emerging providers of transportation and mobility services. ZF is electrifying vehicles in a wide range of categories and, with its products, is helping to reduce emissions, protect the climate, and make mobility safer. In 2021, ZF generated sales of €38.3 billion with approximately 157,500 employees worldwide. The company is represented at 188 production locations in 31 countries.