Outokumpu acquires stake in Cronimet

Stainless steel producer Outokumpu, based in Finland and with plants in several nations, has acquired a 10 percent stake in Germany-based stainless steel and alloys recycling firm Cronimet North-East GmbH.

In the announcement made by Cronimet, an intermediate holding company which directly and indirectly holds the shares in Cronimet’s northeastern European companies, it says the agreement expands cooperation between the two companies and refers to the arrangement as a strategic partnership to contribute to the decarbonization of stainless steel production.

“This partnership is another step towards achieving the sustainable development goals: a low carbon footprint in the production of stainless steel with regional scrap and through shorter transport routes to Outokumpu’s stainless steel mills,” says Jürgen Pilarsky, CEO of Cronimet Holding GmbH.

In addition to supplying Outokumpu’s European stainless steel mills with stainless steel scrap from Cronimet’s sites in northeastern Europe, the two companies say they also have agreed to work together on innovation and research.

“We are pleased to partner with Cronimet, as we share a common goal in terms of regional development—accelerating the circular economy in the Northeast European market area while paying attention to sustainability and CO₂ reduction during transportation and stainless steel production,” says Marc-Simon Schaar, chief procurement officer at Outokumpu.

Cronimet will retain full operative control over North-East GmbH and an expansion of the shareholding in Cronimet North-East or an investment in other companies of the Cronimet Group is not planned by itself or Outokumpu.

Stainless production in Europe is heavily reliant on scrap inputs, with Outokumpu among the leaders in recycled content production.

One of Europe’s other stainless steelmakers, Aperam S.A., owns a majority stake in ELG Metals, a company that, like Cronimet, buys, blends and ships stainless and alloyed scrap.