KIRCHHOFF Automotive forges a €130 million, 7-year alliance with H2 Green Steel to procure near-zero emissions steel from Boden. This strategic move aligns with KIRCHHOFF's commitment to decarbonizing its supply chain, driven by customer demand for lower CO₂ footprint products. The collaboration, starting deliveries in 2027, exemplifies KIRCHHOFF's dedication to sustainability in the automotive industry.
In a landmark €130 million deal, KIRCHHOFF Automotive, a global automotive industry supplier, embarks on a transformative journey with H2 Green Steel. The 7-year agreement positions KIRCHHOFF at the forefront of sustainable development by sourcing near-zero emissions steel from H₂ Green Steel's Boden plant. This strategic partnership underscores KIRCHHOFF's commitment to meeting customer demands for products with lower CO₂ footprints.
With steel constituting approximately 50% of KIRCHHOFF's material purchases, the move towards green steel aligns with its goal to reduce the carbon footprint, particularly associated with conventionally produced steel and aluminum.
The order entails green steel deliveries commencing in 2027, reaching KIRCHHOFF Automotive plants across Europe. The company's proactive approach to emissions reduction includes scrutinizing the greenhouse gas emissions in its supply chain (Scope 3). KIRCHHOFF is a founding member of the "Responsible Supply Chain Initiative RSCI e. V." association, emphasizing its commitment to fostering sustainability in automotive supply chains.
Michael Rank, Global Executive Vice President Procurement at KIRCHHOFF Automotive, acknowledges the pivotal role of customer expectations in driving sustainability initiatives. The collaboration with H₂ Green Steel reflects KIRCHHOFF's ambition to pioneer sustainable practices in the automotive sector.
Stephan Flapper, Head of Commercial at H2 Green Steel, commends KIRCHHOFF's proactive stance, viewing sustainable products as both a competitive edge and a crucial component in achieving climate and sustainability targets.
H2 Green Steel, committed to reducing embodied carbon emissions, will collaborate with KIRCHHOFF on a circularity initiative, aiming to recycle at least 30% of steel scrap volumes back to its electric arc furnaces in Boden.
In conclusion, KIRCHHOFF Automotive's €130 million deal with H2 Green Steel marks a significant stride toward sustainability in the automotive industry. The partnership reflects KIRCHHOFF's commitment to meeting customer demands for eco-friendly products, with near-zero emissions steel. Initiatives to reduce the carbon footprint, such as scrutinizing emissions in the supply chain and active participation in the "Responsible Supply Chain Initiative," position KIRCHHOFF as a trailblazer in sustainable automotive practices.