thyssenkrupp Materials Processing Europe and Stegra sign multi-year deal for non-prime steel, supporting production ramp-up and green steel market development.
thyssenkrupp Materials Processing Europe has entered into a substantial, multi-year supply agreement with Stegra for the procurement of non-prime steel produced at Stegra鈥檚 upcoming steelmaking facility in Boden, Sweden. Under the terms of the agreement, initial deliveries are scheduled to commence in 2027, with the overall contracted volume reaching a high six-digit tonnage over the duration of the partnership. This deal marks an important step for both companies as they align operational scale, market access, and sustainability ambitions within Europe鈥檚 evolving steel value chain.
Through this long-term arrangement, thyssenkrupp Materials Processing Europe will source significant quantities of non-prime steel from Stegra and distribute it to customers across a wide range of industrial sectors throughout Europe. Non-prime steel refers to material that does not meet the most stringent quality specifications required for certain high-end applications, yet remains robust, reliable, and suitable for many industrial uses. Such material is commonly utilized in applications where absolute surface perfection or ultra-tight tolerances are not critical, making it an essential and well-established segment of the European steel market.
Heather Wijdekop, CEO of the Processing business unit at thyssenkrupp Materials Services, highlighted that thyssenkrupp Materials Processing Europe is uniquely positioned to manage the scale of this agreement. With its extensive customer base, advanced logistics infrastructure, and well-established processing network, the company can efficiently handle large steel volumes and tailor products to meet specific customer requirements. At the same time, the collaboration supports Stegra during the ramp-up phase of its large-scale production facilities in Boden and contributes to broader efforts aimed at transforming and decarbonizing the European steel industry.
As a core part of thyssenkrupp Materials Services, thyssenkrupp Materials Processing Europe operates as one of Europe鈥檚 leading steel and aluminum service centers. The company specializes in processing steel products to precise customer specifications, serving diverse end markets such as automotive suppliers, construction firms, and original equipment manufacturers (OEMs). The agreement with Stegra strengthens its supply portfolio while reinforcing its role as a key intermediary between steel producers and downstream industrial customers.
Stegra, meanwhile, is in the process of constructing a next-generation steel production facility in Boden, Sweden. The site is designed to manufacture steel using green hydrogen generated from renewable electricity, significantly reducing the direct emissions traditionally associated with steelmaking. However, due to inherent characteristics of the steel production process, every steel mill produces a certain share of non-prime material. While this steel may not qualify for premium-grade applications, it remains mechanically strong and durable, ensuring it can be deployed effectively across numerous use cases.
Stephan Flapper, Head of Commercial at Stegra, emphasized the strategic importance of having a reliable partner for non-prime steel during the ramp-up of the Boden steel mill. He described the agreement as the beginning of a long-term partnership with thyssenkrupp Materials Services, a major and influential player in the European steel market. According to Flapper, collaboration between the two companies can help create stronger market demand for steel products produced via the green hydrogen route, even while addressing the practical realities of steel production.
Although Stegra鈥檚 Boden facility will operate exclusively on hydrogen and renewable electricity, the non-prime steel supplied under this agreement will not be marketed as CO2-reduced. This is because Stegra intends to monetize the environmental benefits of its low-emission production process separately by selling Environmental Attribute Certificates (EACs) to customers purchasing prime steel. The green value associated with emissions reductions will therefore be allocated to those prime steel buyers rather than to recipients of the physical non-prime material.
Stegra announced its first agreement related to Environmental Attribute Certificates in September 2025, underscoring the growing relevance of this mechanism in the steel sector. Agreements covering non-prime steel play a critical role in enabling the development and credibility of the EAC market. To prevent any risk of double counting emissions reductions, buyers of the physical non-prime steel will be contractually required to refrain from making any environmental or 鈥済reen鈥� claims related to the material.
