Growth in North America

• The location in Sinton, Texas, is the fourth steel service center in the USA.

• The focus is on steel processing and supply chain management between steelworks and OEMs in a variety of market segments.

• Investments of more than EUR 30 million will create additional capacity for increasing demand in the region.

thyssenkrupp Materials Services, one of the world's leading mill-independent materials distribution and service providers, celebrated the opening of its new steel service center in Sinton, Texas, on May 7, 2024. The company invested a total of EUR 30 million (approx. USD 32 million). The new location will be part of the network of the US unit thyssenkrupp Materials NA. A key objective of the new service center is to support the materials and supply chain management needs of manufacturing companies across multiple markets in the region and neighboring Mexico, which previously relied on materials with long transportation routes due to their geographic location. Previously, the nearest producing mill was over 700 miles (1,100 kilometers) away. Due to its geographic location, the Sinton site is an important strategic addition to the three existing steel service centers in Richburg, South Carolina; Woodstock, Alabama; and Detroit, Michigan. The move continues thyssenkrupp Materials Services' expansion in North America, where the company has invested more than EUR 100 million in the past two years.

"North America is an important growth market for us, which is why we are continuously expanding our position as a strategic partner to the automotive industry," said Martin Stillger, CEO of thyssenkrupp Materials Services, at the opening of the site. "With our new steel service center in Sinton, we are ensuring the flexible and reliable supply of high-quality materials to existing and new customers. In line with our 'Materials as a Service' strategy, we take over the efficient and secure management of supply chains, while our customers can concentrate on their core business."

thyssenkrupp Materials Processing Europe and Autoliv, the world's largest supplier of safety systems for the automotive industry, have agreed to expand their existing collaboration for the supply of steel to include low-CO₂ steel. From the end of 2026, thyssenkrupp Materials Processing Europe will supply Autoliv with bluemint® Steel. Autoliv's production network includes branches in 25 countries and 14 technical centers worldwide.

The plan underlines the long-term partnership between thyssenkrupp Materials Processing Europe and Autoliv: both companies are consistently pursuing their sustainability activities and have set themselves the goal of operating climate neutrally by 2030. Autoliv plans to achieve net-zero emissions across the entire supply chain by 2040. CO₂-reduced and CO₂-neutral materials are an essential lever for this. The first joint projects with CO₂-reduced steel – bluemint® recycled from thyssenkrupp Steel – are already starting this year, with the quantities being gradually increased over the next few years.

• Changed business model aims to sustainably improve competitiveness and profitability

• Focus on materials-related service business takes account of changing customer needs

• Transformation plan also includes job cuts and site closures

thyssenkrupp Schulte, the leading German materials distribution and service provider, is implementing a strategic realignment of its business model in order to consolidate and further expand its market position. The aim is to make structural changes to the company to optimally position it for current and future challenges.

• A systematic innovation process focuses on digital solutions for the flexible and resilient design of global supply chains.

• Four corporate ventures of thyssenkrupp Materials Services are active on the market.

• The new solution "Forward Sensing" is designed to give users a complete overview of their entire supply network.

Expanding in growth markets and creating new forms of value creation: Businesses in all sectors worldwide are faced with the challenge of continuously adapting to new conditions and changing customer demands in order to remain successful competitive. One way to do this is to develop new solutions and offerings. On the occasion of the UN World Day of Creativity and Innovation on April 21, 2024, thyssenkrupp Materials Services is presenting its innovation activities.

To drive business development with innovations, the materials distribution and service provider established a systematic innovation process several years ago. Its activities focus on digital solutions that enable a more flexible and resilient organization of global supply chains.

"We are using innovation strategically to digitalize supply chains and make them transparent. In doing so, we are responding to the growing needs of our customers who, in the face of macroeconomic and geopolitical disruptions and the associated dynamic market conditions, want to have not only stable, but above all flexible supply chains," says Martin Stillger, CEO of thyssenkrupp Materials Services. "As a company, we have been around for more than 125 years. Throughout this time, our transformation has always been driven by the goal of evolving – with the customer at the center."

Logistics spending in the U.S. has grown rapidly in recent years. More than 72 percent of the country's freight is transported by road each year, with trucks traveling more than 300 billion miles annually. However, road transport generates a large number of emissions that need to be reduced drastically. Martin Stillger, CEO of thyssenkrupp Materials Services, evaluates alternative drives and their relevance for the logistics industry:

"As one of the world’s leading mill-independent materials distribution and service providers, we are aware of our great responsibility to reduce greenhouse gas emissions. We have set ourselves the ambitious goal of operating on a climate-neutral basis by 2030. Part of this involves switching to alternative drives to get our products from A to B in a more climate-friendly way. Thanks to technological progress in recent years, the first alternatives to fossil fuels are ready for use today – and will be scalable in the future.

At thyssenkrupp Materials Services, we are intensively examining the feasibility of possible alternatives for more sustainable road freight logistics in both North America and Europe. Let me give you four examples:             

In California a large proportion of our truck fleet already runs on renewable diesel R99. The engines do not need to be specially converted, but the CO₂ savings are still enormous. In addition, our North American subsidiary, Copper and Brass Sales, is currently testing the use of RNG trucks that run on renewable natural gas. In Germany, the first hydrogen-powered trucks have been operating for us since this year. Our British subsidiary, thyssenkrupp Materials UK, uses trucks that run on hydrotreated vegetable oil (HVO). Compared to conventional diesel, this reduces greenhouse gas emissions by up to 95 percent.      

As you can see: There are many options. Since it is not yet possible to predict which technologies and solutions will ultimately prevail, we are not restricting ourselves to one approach, but are focusing on diversification in the pilot phases, with the aim of expanding the proven options at a later stage."

The sustainability strategy of thyssenkrupp Materials Services is called "BEYOND" and is based on the internationally recognized ESG standards – but goes beyond these requirements. In addition to reducing its own CO₂ emissions, the focus is on developing sustainable products and services for customers that enable them to demonstrably reduce their carbon footprint and increase efficiency.

On April 16, 2024 thyssenkrupp Materials Services and thyssenkrupp Steel Europe signed a Memorandum of Understanding for the purchase of climate-friendly steel. As part of the agreement, the subsidiary of the materials distribution and service provider, thyssenkrupp Schulte, commits to purchasing fixed quantities of C0₂-reduced bluemint® steel with immediate effect. In the following years, the quantities are to increase gradually and the purchase agreement is to run up to and including 2030. thyssenkrupp Schulte will not only supply its own customers in the German domestic market with the CO₂-reduced steel, but will also make it available to other stockholding units in Western and Eastern Europe. The signing underlines the consistent expansion of the sustainable product portfolio. 

Detlef Schotten, CEO of thyssenkrupp Schulte, says: "With the increasing requirements for sustainable business processes, we are seeing growing demand from our customers for CO₂-reduced alternatives. This trend will continue to grow in the coming years. As a materials distributor, we are not just a supplier, but a partner for our customers and support them in their endeavors to become more sustainable. This includes a comprehensive portfolio of products and solutions that create ecological added value. The signing of the Memorandum of Understanding with thyssenkrupp Steel is an important step that underpins our commitment to sustainable material solutions."

Jörg Paffrath, Head of Sales Industry at thyssenkrupp Steel Europe, adds: "In the age of sustainability, partnerships like this are crucial. By signing this Memorandum of Understanding, we are sending a strong signal in favor of a forward-looking industry. Our commitment to CO₂-reduced steel also emphasizes our role as a responsible partner for our customers. We are determined to meet the growing demand for sustainable material solutions and, together with our partners, to make a positive contribution to tackling the global challenges of climate change."