RCS - Ferrexpo plc - Ferrexpo and Salzgitter to further co-operation

FerrexpoAnnouncement

24/05/2024 07:00

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RNS Number : 7467P  Ferrexpo PLC  24 May 2024

 

 

 

24 May 2024

 

Ferrexpo plc

("Ferrexpo" or the "Group")

 

Ferrexpo and Salzgitter to further green steel co-operation

 

Ferrexpo plc (LSE: FXPO) and Salzgitter Flachstahl GmbH - a subsidiary of
Salzgitter AG - announce the consolidation of their long-standing cooperation.
The companies have signed a Memorandum of Understanding ("MoU") for the supply
of high-quality direct reduction iron ore (DR) pellets for low-carbon steel
production.

Highlights

 * Memorandum of Understanding for the use of high-quality iron ore pellets in
SALCOS(®), Salzgitter's operational

decarbonisation programme

 * Joint development of raw material feed strategies and green supply chains

Yaroslavna Blonska, Acting Chief Marketing Officer of Ferrexpo, commented:

"Ferrexpo and Salzgitter have been working together since 2016. As Europe
transitions to greener steel production, it is gratifying to have agreed terms
for our cooperation well into the future. Ferrexpo's DR pellets can lower
steel making emissions significantly as part of the SALCOS(®) programme. The
agreement with Salzgitter reinforces Ferrexpo's position as a leading supplier
in Europe and will also benefit the wider Ukrainian economy during a
challenging time and subsequently during the post-war reconstruction period."

 

Gerd Baresch, Technical Director of Salzgitter Flachstahl GmbH, commented:

"We are delighted to continue our long-standing cooperation with Ferrexpo and
look forward to intensifying these activities within the context of our
SALCOS(®) transformation programme. Ferrexpo is a strong partner in the
decarbonisation of our production processes and logistics chains. The
agreement reached will help us to reduce carbon emissions along the supply
chains and drive green steel production forward."

Ferrexpo's DR pellets will be used as part of the SALCOS(®) programme, in
which Salzgitter is incrementally converting its steel production to
hydrogen-based processes and technologies. Steel production using SALCOS(®)
requires iron ore pellets of very high quality and this MoU demonstrates
Salzgitter's confidence in the high quality and availability of Ferrexpo's

products. The SALCOS(®) programme will be completed from a technical
perspective by 2033.

As part of the MOU, Ferrexpo and Salzgitter Flachstahl GmbH will also seek to
identify the most suitable raw material feed strategies for hydrogen-based
steel production in direct reduction plants as well as optimising their green
logistics chains, freight and inventory management.

 

 Ferrexpo and Salzgitter Flachstahl management at Salzgitter's operations in Germany

 From left to right: Lucio Genovese (Executive Chair of Ferrexpo), Yaroslavna Blonska (Acting Chief Marketing Officer of Ferrexpo) and Gerd Baresch (Technical Director of Salzgitter Flachstahl GmbH)

 

 

 

For further information, please contact:

 

 Ferrexpo:                                                       Salzgitter AG:

 Nick Bias                                                       Thorsten Moellmann

 Group Head of Investor Relations and Corporate Communications   Head of Group Communications and Brand

 + 44 (0)7733 177 831                                            + 49 5341 21 2300

 n.bias@ferrexpo.ch (mailto:n.bias@ferrexpo.ch)                  moellmann.t@salzgitter-ag.de (mailto:moellmann.t@salzgitter-ag.de)

 Tavistock (Financial Public Relations):                         Olaf Reinecke

 Jos Simson                                                      Spokesperson for the Group

 +44 (0)20 7920 3150                                             + 49 5341 21 5350

 ferrexpo@tavistock.co.uk (mailto:ferrexpo@tavistock.co.uk)      reinecke.o@salzgitter-ag.de (mailto:reinecke.o@salzgitter-ag.de)

 Gareth Tredway

 +44 (0)7785 974 264

 ferrexpo@tavistock.co.uk (mailto:ferrexpo@tavistock.co.uk)

 

Ferrexpo plc is a Swiss headquartered iron ore company with assets in Ukraine
and a premium listing on the London Stock Exchange in the FTSE 250 index
(ticker FXPO). The Group produces high-grade iron ore pellets, which are a
premium product for the global steel industry and enable reduced carbon
emissions and increased productivity for steelmakers when the Group's iron ore
pellets are converted into steel, compared to more commonly traded forms of
iron ore. Ferrexpo's operations have been supplying the global steel industry
for over 50 years. Before Russia's invasion of Ukraine in February 2022, the
Group was the world's third largest exporter of pellets to the global steel
industry. The Group has a customer base comprising of premium steel mills
around the world. For further information, please visit www.ferrexpo.com
(http://www.ferrexpo.com/) .

 

Salzgitter AG ranks as one of Germany's leading steel and technology groups.
As a pioneer in the circular economy, they focus on sustainable innovation and
on transforming products and processes within the steel production, steel
processing, trading and technology sectors. With the "Salzgitter AG 2030"
strategy and anchored in the principle of "Pioneering for Circular Solutions",
the Group is setting new benchmarks in the industry. Salzgitter's aspirations
are realised through strong initiatives and programmes such as SALCOS(®) -
Salzgitter Low CO(2) Steelmaking. Through partnerships, and in networks,
Salzgitter is actively driving the process of development towards a circular
economy. With around 25,000 employees worldwide at 160 national and
international subsidiaries and associate companies, they live up to their
global aims for growth, profitability and their pioneering position. In the
financial year 2023, they generated external sales of around € 11 billion,
with a crude steel capacity of 7 million tons. For further information, please
visit http://www.salzgitter-ag.com (http://www.salzgitter-ag.com)

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