Gestamp and Hidnum Steel sign clean steel agreement

Gestamp and primary metals producer Hydnum Steel have signed an agreement to use clean steel produced with renewable energy and green hydrogen to manufacture automotive components.

The two companies say the collaboration represents an important step forward in decarbonizing the mobility sector.

The agreement was formalized by Javier Imaz, Chief Purchasing Officer (CPO) at Gestamp, and Gilles Merol, Chief Marketing Officer at Hydnum Steel.

Under the terms of the partnership, Gestamp – through its metal recycling subsidiary Gescrap – will supply high-quality steel scrap from stamping operations to Hydnum Steel, which will then use renewable energy and green hydrogen to produce ultra-low CO2 steel.

The agreement also includes technical cooperation to develop steel grades that meet the standards required by the automotive industry in terms of chemical composition, mechanical properties, thickness and finish. Gestamp will have priority access to this low-emission steel to produce advanced metal components, supporting the transition to sustainable mobility.

This collaboration will help promote circularity, a key pillar of decarbonizing the automotive supply chain and achieving net zero carbon cars in the long term.

This initiative is consistent with Gestamp’s decarbonization strategy, which emphasizes the use of more sustainable raw materials, material recycling, and partnerships with strategic allies to drive cleaner, more efficient movement. Recycling production scrap – especially steel and aluminium, which account for more than 70% of Gestamp’s total emissions due to carbon-intensive production processes – is particularly crucial.

Gestamp’s recycling model ensures the availability of high-quality scrap to produce ultra-low-emission steel, enabling full traceability of the life cycle of the material through collection, sorting and reintegration into the production chain.

For Hydnum Steel, the extensive use of scrap metal as a raw material is key to applying circular economy principles to its production model. Its Portolano plant will be the first of its kind in the Iberian Peninsula, powered by an electric arc furnace powered exclusively by renewable energy. Replacing natural gas with green hydrogen will reduce emissions by 98% compared to traditional steel plants. The plant will also have a closed water treatment and reuse system, resulting in zero water discharge.

“This agreement represents another step forward in our efforts to decarbonize the automotive industry and strengthen our circular economy model, which is based on sustainable resource management and the reuse of our high-quality scrap in steel production,” said Javier Imaz, Chief Procurement Officer (CPO) at Gestamp.

“The partnership reflects both companies’ commitment to developing a sustainable and efficient European industry. The Hydnum Steel plant is a pioneering energy transition project that will produce steel with the utmost respect for the environment,” said Gilles Merol, Chief Marketing Officer (CMO) of Hydnum Steel.

“Gestamp and Hydnum Steel Sign Clean Steel Agreement” was originally created and published by Just automaticwhich is a trademark of GlobalData.

The information on this site has been included in good faith for general informational purposes only. It is not intended to constitute advice on which you should rely, and we make no representation or warranty, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.