Mercedes-Benz AG and Steel Dynamics Inc. secure sustainable steel supply deal for Tuscaloosa plant
September 18 2023 - 9:01AM
Business Wire
Mercedes-Benz signs an agreement with Steel Dynamics, Inc. (SDI)
to source more than 50,000 tonnes of CO2-reduced steel annually for
its plant in Tuscaloosa, Alabama, marking another crucial milestone
towards decarbonizing its global steel supply chain. SDI steel will
be made using an electric arc furnace (EAF) and will use
electricity from 100% renewable sources. With EAFs powered by green
electricity, emissions can be reduced more than half to 1.0-tonne
CO2 per tonne steel on average compared to primary steel production
which uses blast furnaces and basic oxygen furnaces. In doing so,
SDI and Mercedes-Benz, which have been working together since 2015,
go a step further towards lowering emissions in the steel supply
chain.
SDI flat rolled steel made of 70% or greater recycled scrap
content is being used in all Mercedes-Benz models built in
Tuscaloosa, including the EQS SUV and EQE SUV. Both parties agreed
to potentially increase the share of scrap in the near future,
which would reduce the carbon footprint even further. The
CO2-reduced steel from SDI is being introduced into series
production at Tuscaloosa plant as early as September 2023.
In line with the company’s local-for-local approach, the supply
agreement in the United States is part of a global effort to
decarbonizing the Mercedes-Benz steel supply chain and follows
several agreements on the procurement of CO2-reduced and almost
CO2-free steel in Europe. For more information click here.
“Our ambition is clear: Together with our
partners we want to make our entire fleet of new vehicles net
carbon-neutral along the entire value chain by 2039. Following this
strategy our agreement with SDI to procure more than 50,000 tonnes
CO2-reduced steel annually is another important milestone to
establish a sustainable steel supply chain in North America.”
Dr. Gunnar Güthenke, Head of Procurement &
Supplier Quality Mercedes-Benz Cars
Actively pursuing a responsible and sustainable supply
chain
In addition to consistently reducing CO₂-emissions, the company
is committed to responsible steel sourcing, relying on recognized
standards and robust certificates. Mercedes-Benz is a member of the
Responsible Steel Initiative and is actively involved in the
development of a certifiable sustainability standard for the steel
industry. The aim is to ensure environmentally compatible and
socially acceptable steel production along the entire value
chain.
About Mercedes-Benz
Mercedes-Benz has set itself the target of making its fleet of
new vehicles net carbon-neutral over the vehicles’ entire life
cycle by 2039. When it comes to sustainability, the company is
focused on the consistent reduction of CO₂ emissions as well as the
preservation of resources. In 2020, Mercedes-Benz Cars and
Mercedes-Benz Vans sent out an ambition letter to suppliers of
production materials. This was a declaration of intent on the
supply of net carbon-neutral products and established prior
approval as a prerequisite for awarding contracts. Suppliers
representing almost 90% of Mercedes-Benz's annual purchasing volume
have already signed the letter, among them many steel
suppliers.
The vehicle manufacturer’s “Design for Environment” approach
takes resource preservation from the very earliest stages of
product development into account. Together with its partners,
Mercedes-Benz is researching more sustainable material technologies
and working intensively towards circularity.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. (SDI) is one of the largest domestic steel
producers and metal recyclers in North America, with one of the
most diversified product and end-market portfolios in the domestic
steel industry. SDI operates using a circular manufacturing model,
producing lower-carbon-emission, high-quality steel using electric
arc furnace (EAF) technology with recycled ferrous scrap as the
primary input. The company puts a focus on the future and set a
goal for their EAF steel mill operations to be carbon neutral by
2050. To achieve this target, they also set interim emissions
reduction and renewable energy milestones to be achieved by 2025
and 2030. Steel Dynamics is a founding member of the Global Steel
Climate Council, which was created to lead an effort to reduce
steel carbon emissions and encourage investments in lower-carbon
emission technology through product certification and a
science-based target-setting framework. steeldynamics.com
Further information about Mercedes-Benz is available at
www.mercedes-benz.com. Press information and digital services for
journalists and multipliers can be found on our Mercedes-Benz
Media online platform at media.mercedes-benz.com. Learn more
about current topics and events related to Mercedes-Benz Cars &
Vans on our @MB_Press Twitter channel at
www.twitter.com/MB_Press.
Mercedes-Benz AG at a glance
Mercedes‑Benz AG is part of the Mercedes‑Benz Group AG with a
total of around 170,000 employees worldwide and is responsible for
the global business of Mercedes‑Benz Cars and Mercedes‑Benz Vans.
Ola Källenius is Chairman of the Board of Management of
Mercedes‑Benz AG. The company focuses on the development,
production and sales of passenger cars, vans and vehicle-related
services. Furthermore, the company aspires to be the leader in the
fields of electric mobility and vehicle software. The product
portfolio comprises the Mercedes‑Benz brand with the brands of
Mercedes‑AMG, Mercedes‑Maybach, Mercedes‑EQ, G‑Class as well as
products of the smart brand. The Mercedes me brand offers access to
the digital services from Mercedes‑Benz. Mercedes‑Benz AG is one of
the world's largest manufacturers of luxury passenger cars. In 2022
it sold around two million passenger cars and 415,300 vans. In its
two business segments, Mercedes‑Benz AG is continually expanding
its worldwide production network with around 35 production sites on
four continents, while gearing itself to meet the requirements of
electric mobility. At the same time, the company is constructing
and extending its global battery production network on three
continents. As sustainability is the guiding principle of the
Mercedes‑Benz strategy and for the company itself, this means
creating lasting value for all stakeholders: for customers,
employees, investors, business partners and society as a whole. The
basis for this is the sustainable business strategy of the
Mercedes‑Benz Group. The company thus takes responsibility for the
economic, ecological and social effects of its business activities
and looks at the entire value chain.
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version on businesswire.com: https://www.businesswire.com/news/home/20230918411744/en/
Pia Droldner, phone: +49 176 30988043,
pia.droldner@mercedes-benz.com Andrea Berg, phone: +1 917 6672391,
andrea.a.berg@mercedes-benz.com
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