EQS-News: PWO Group advances its sustainability strategy with the purchase of “green steel” starting in 2026

PWO Group advances its sustainability strategy with the purchase of “green steel” starting in 2026

Carlo Lazzarini (CEO): "We have already achieved extensive reductions in greenhouse gas emissions in our production and energy procurement processes. Now we are also accelerating the decarbonization of our value chain. This step reiterates our commitment to our ambitious climate protection goals."

Oberkirch, December 13, 2023 – The PWO Group continues to implement its sustainability strategy at a rapid pace. In order to reduce greenhouse gas (GHG) emissions when purchasing steel, the most important raw material for our business, we signed a partnership agreement with Salzgitter Mannesmann Stahlservice GmbH — a subsidiary of Salzgitter AG — to purchase "green steel" from Salzgitter starting in 2026. This will enable us to offer our customers an environmentally friendly alternative to conventionally produced steel in the future.

With the "SALCOS® - Salzgitter Low CO₂ Steelmaking" transformation program, the Salzgitter Group will gradually convert its steel production to hydrogen-based processes. The aim is to achieve virtually CO₂-free production starting in 2033. The classic blast furnace route is to be replaced by a production route using direct reduction and electric arc furnaces.

Jochen Lischer, CFO, emphasizes: "Our agreement represents a milestone in the decarbonization of our value chain. By 2030, we want to reduce our absolute GHG emissions in Scope 3 by 28.0 percent versus the base year of 2019. The purchase of "green steel" from Salzgitter Mannesmann Stahlservice GmbH, with a CO₂ footprint in production that is up to 95 percent lower, will help us to realize this goal."

Michael van der Vlist, Managing Director of Salzgitter Mannesmann Stahlservice GmbH, adds: "We are delighted to be expanding our cooperation with the PWO Group in such a forward-thinking manner. The successful transformation to a climate-neutral economy depends on a network of strong partners who ensure that the market for CO₂-reduced steel products continues to grow."

PWO AG & SMS
The Executive Board & The Management

Contact PWO:
Charlotte Frenzel
Investor Relations & Corporate Communications

T. +49 179 6904 237
E-Mail: charlotte.frenzel.ext.ma@pwo-group.com

Contact SMS:
Andreas Marks
Marketing & Business Development

T. +49 721 9557 810
M. +49 160 9463 0986
E-Mail: andreas.marks@salzgitter-ssc.de