thyssenkrupp Materials Services and Stegra agree on significant multi-year non-prime steel supply

thyssenkrupp Materials Processing Europe, part of thyssenkrupp Materials Services, has signed an agreement with Stegra for the delivery of steel from Stegra’s site in Boden, Sweden. In the multi-year agreement, thyssenkrupp Materials Processing Europe will acquire significant amounts of non-prime steel from Stegra to supply its customers in various industries across Europe. First deliveries are expected to start in 2027. The total tonnage of the agreement will be in the high-six-digit range.

“At thyssenkrupp Materials Processing Europe, we have the customer base, the logistics capabilities and the processing network to handle these large amounts of steel,” explains Heather Wijdekop, CEO of the Processing business unit at thyssenkrupp Materials Services. “At the same time, we are also teaming up with Stegra to support the ramp-up of their large-scale facilities in Boden and their efforts to decarbonize the steel industry.”

Stegra is currently building a new steel production facility in Boden, Sweden, which will produce steel with green hydrogen from renewable electricity. Due to the nature of steel production, steel mills produce a certain amount of non-prime steel: material that doesn’t meet the highest quality standards that certain applications may require, but is still a strong and durable material eligible for various uses. As a result, non-prime steel makes up a relevant portion of the steel market in Europe.

“A partner for non-prime steel is important for the ramp-up of our steel mill and we see this as the start of a long-term partnership with thyssenkrupp Materials Services as a key player in the market,” says Stephan Flapper, Head of Commercial at Stegra. “Together we can drive an even stronger pull for steel products made via the hydrogen route.”

Although Stegra’s Boden site uses only hydrogen and renewable electricity, the non-prime steel purchased by thyssenkrupp Materials Services in the course of this agreement will not be considered to be CO₂-reduced as Stegra will sell the respective certificates to other customers in the prime steel market.

About thyssenkrupp Materials Services

thyssenkrupp Materials Services is a global leader in materials distribution and services. Around 15,500 employees serve 250,000 customers in the core markets of Europe and North America. The focus is on three fields of activity: storage, distribution and trading of materials, their targeted processing and services related to supply chains. The company started focusing on digital supply chain solutions early on and is pursuing its “Materials as a Service” strategy since 2019. In fiscal year 2024/25, thyssenkrupp Materials Services generated total sales of €11.4 billion and adjusted EBIT of €132 million.

About Stegra

Stegra is an industrial impact scale-up in the process of building its first plant for large-scale production of green hydrogen, green iron and green steel. The company was founded in 2020 as H2 Green Steel and changed name to Stegra in 2024 to reflect its purpose to decarbonize hard-to-abate industry, starting with steel. Stegra’s flagship plant is being built in Boden, northern Sweden, and its headquarters are in Stockholm. www.stegra.com