Salzgitter Launches ScanLoop Circular Steel Project with Volvo Cars to Cut Emissions and Strengthen Resource Efficiency

High-quality steel scrap from Sweden from VOLVO Cars is melted down again in Salzgitter.

(IN BRIEF) Salzgitter and Volvo Cars have expanded their closed-loop cooperation through the ScanLoop project, under which high-quality steel scrap from Volvo’s Olofström plant is sorted, compacted, and transported by low-emission rail back to Salzgitter for remelting and reuse in new steel production replacing empty return trains with scrap shipments and relying on carbon-neutral electricity for traction the partnership significantly reduces emissions while strengthening resource efficiency across the value chain Sandrina Sieverdingbeck of DEUMU highlighted the project as a strong example of Salzgitter’s circularity strategy and of collaboration among several Salzgitter Group subsidiaries including Salzgitter Mannesmann Scandinavia, DEUMU, VPS Verkehrsbetriebe Peine-Salzgitter, and Salzgitter Flachstahl.

(PRESS RELEASE) SALZGITTER, 9-Feb-2026 — /EuropaWire/ — Salzgitter AG has further strengthened its closed-loop cooperation with Volvo Cars through the ScanLoop project, a circular economy initiative that links Volvo’s body parts plant in Olofström, Sweden, directly with steel production at Salzgitter Flachstahl GmbH in Germany. Building on their long-standing partnership, the two companies expanded their collaboration last year to create a fully integrated material cycle in which production scrap is returned to the steelmaking process instead of being treated as waste.

Under the arrangement, Salzgitter Group continues to supply high-quality flat steel to Volvo’s Swedish facility for vehicle body production. In a significant step toward greater resource efficiency, Salzgitter now also takes back large volumes of steel scrap generated during Volvo’s stamping processes. The scrap is carefully sorted into separate material streams, compressed into compact cubes to optimize transport efficiency, and then shipped by rail back to Salzgitter for remelting and reuse in new steel production.

Rather than sending empty trains back to Germany after delivering steel to Sweden, Salzgitter has repurposed return freight to transport the scrap material. The first dedicated train carrying 25 scrap wagons, measuring approximately 545 meters in length, recently arrived at Beddingen station near Salzgitter, marking an important milestone in the implementation of ScanLoop.

A central element of the project is the consistent use of rail transport, which significantly reduces emissions compared to road-based logistics. Despite the roughly 700-kilometre distance between Olofström and Salzgitter, the train completed the journey in around one and a half days, demonstrating that low-emission circular logistics can also be efficient. The transport solution relies on high-capacity, interoperable locomotives and 100 percent carbon-neutral electricity, further reinforcing the sustainability credentials of the initiative.

The ScanLoop partnership also highlights cross-company collaboration within the Salzgitter Group. Sandrina Sieverdingbeck, Managing Director of DEUMU Deutsche Erz- und Metall-Union, emphasized that the project clearly reflects the Group’s circularity strategy. She noted that the cooperation demonstrates how industrial partnerships can contribute to resource efficiency and decarbonization across the value chain, while also showcasing strong internal collaboration between entities such as Salzgitter Mannesmann Scandinavia, DEUMU, VPS Verkehrsbetriebe Peine-Salzgitter, and Salzgitter Flachstahl.

Through ScanLoop, Salzgitter and Volvo Cars are not only reducing waste and emissions but also setting a practical example of how circular economy principles can be integrated into large-scale industrial operations while delivering both environmental and business benefits.

Contact Salzgitter AG:

Thorsten Moellmann
Head of Corporate Communications and Brand
Phone: +49 5341 21-2300
moellmann.t@salzgitter-ag.de

Olaf Reinecke
Group Press Officer
Phone: +49 5341 21-5350
reinecke.o@salzgitter-ag.de

SOURCE: Salzgitter AG