Ferrexpo PLC and Salzgitter AG have signed a Memorandum of Understanding (MoU) for the supply of high-quality direct reduction iron ore (DR) pellets for low-carbon steel production. This collaboration is part of Salzgitter's SALCOS® program, which aims to transition to greener steel production. Yaroslavna Blonska, Acting Chief Marketing Officer of Ferrexpo, highlighted the significance of the agreement, stating that "Ferrexpo's DR pellets can lower steel making emissions significantly as part of the SALCOS® program." Gerd Baresch, Technical Director of Salzgitter Flachstahl GmbH, expressed excitement about the partnership, emphasizing Ferrexpo's role in the decarbonization of production processes and logistics chains.

The MoU will see Ferrexpo's DR pellets being used in Salzgitter's SALCOS® program, which involves converting steel production to hydrogen-based processes and technologies. The agreement also involves joint development of raw material feed strategies and green supply chains. Additionally, the companies will work on optimizing green logistics chains, freight, and inventory management for hydrogen-based steel production in direct reduction plants. The SALCOS® program is expected to be completed from a technical perspective by 2033.

Ferrexpo plc is a Swiss headquartered iron ore company with assets in Ukraine, while Salzgitter AG ranks as one of Germany's leading steel and technology groups. Ferrexpo's high-grade iron ore pellets are a premium product for the global steel industry, enabling reduced carbon emissions and increased productivity for steelmakers. Salzgitter, on the other hand, focuses on sustainable innovation and transforming products and processes within the steel production, steel processing, trading, and technology sectors. The group is actively driving the process of development towards a circular economy through initiatives such as SALCOS®.

This collaboration reinforces Ferrexpo's position as a leading supplier in Europe and will benefit the wider Ukrainian economy during a challenging time and subsequently during the post-war reconstruction period. The partnership signifies Salzgitter's confidence in the high quality and availability of Ferrexpo's products and demonstrates a commitment to reducing carbon emissions along the supply chains and driving green steel production forward.