The transaction was carried out in the form of a share purchase. CRONIMET retains full operational control over the CRONIMET North-East GmbH companies involved. There are no plans to expand the shareholding in CRONIMET North-East or to acquire an interest in other companies of the CRONIMET Group.

With this partnership, CRONIMET and Outokumpu are intensifying their cooperation with the aim of optimizing the raw material cycle and using regionally processed scrap for the production of stainless steel in Europe.

"This partnership is a further step towards achieving the sustainable development goals of a low carbon footprint in the production of stainless steel through the use of regional scrap and shorter transportation routes to Outokumpu’s stainless steel mills," says Jürgen Pilarsky, CEO of CRONIMET Holding GmbH. " I also see our collaboration as a chance to learn from each other and as a great opportunity to drive our CO2 reduction ambitions forward together, as we are both committed to the SBTi targets. And, moreover, this partnership is an excellent example of the implementation of the 17th UN goal, which promotes the formation of partnerships to achieve the Sustainable Development Goals.”

Both companies have also agreed to work together on innovation and research. They want to work together on technologies that contribute to the decarbonization of stainless steel production. The partnership also focuses on reducing costs through better planning on both sides and reducing waste within the supply chain.

"By expanding our existing successful collaboration, we are ensuring that the recycled steel we purchase is of the best possible quality and is sourced as locally as possible, so that we can reduce the carbon footprint of our production. Our climate targets are ambitious and mean that we need to reduce emissions in our supply chain in particular. We can only achieve this in cooperation with our suppliers," says Marc-Simon Schaar, Chief Procurement Officer at Outokumpu.