thyssenkrupp Materials Processing Europe has entered into a long-term supply agreement with Stegra, securing significant volumes of steel from Stegra’s upcoming production facility in Boden, northern Sweden. Deliveries are scheduled to begin in 2027, with total volumes expected to reach high six-digit tonnes over the duration of the agreement.
The deal focuses on the purchase of non-prime steel, a standard by-product of steelmaking that does not meet the most stringent specifications required for certain premium applications, but remains structurally sound and suitable for a wide range of industrial uses. Through this partnership, thyssenkrupp Materials Processing Europe will distribute the material to customers across multiple sectors throughout Europe.
Leveraging scale, logistics, and processing expertise
thyssenkrupp Materials Processing Europe is part of thyssenkrupp Materials Services, one of Europe’s leading materials distribution and service groups. The company operates an extensive network of processing sites and logistics hubs, supplying customised steel and aluminium products to industries including automotive suppliers, construction, mechanical engineering, and OEM manufacturing.
With its established customer base and advanced processing capabilities, thyssenkrupp is well positioned to absorb and repurpose large volumes of non-prime steel as Stegra scales up operations in Boden.
“We have the customer access, logistics infrastructure, and processing network required to handle these volumes efficiently,” said Heather Wijdekop, CEO of the Processing business unit at thyssenkrupp Materials Services. “At the same time, this collaboration allows us to actively support Stegra as it brings a new, large-scale steelmaking facility online and advances the decarbonisation of the steel industry.”
Supporting the ramp-up of hydrogen-based steelmaking
Stegra is currently constructing a next-generation steel plant in Boden designed to produce steel using green hydrogen and renewable electricity, rather than coal. The project is widely seen as one of Europe’s most ambitious efforts to decarbonise primary steel production.
As with all steel mills, Stegra’s process will generate a share of non-prime material during production. Having a reliable partner for this material is critical to ensuring stable operations during ramp-up and ongoing production.
“A strong outlet for non-prime steel is essential for the successful scale-up of our plant,” said Stephan Flapper, Head of Commercial at Stegra. “We view this agreement as the beginning of a long-term partnership with thyssenkrupp Materials Services, a key player in the European steel market. Together, we can strengthen demand for steel produced via the green hydrogen route.”
Environmental attributes handled separately
While Stegra’s Boden facility will operate entirely on renewable electricity and hydrogen, the non-prime steel supplied under this agreement will not be marketed as CO₂-reduced. Instead, Stegra will retain and sell the environmental value of its low-emission production separately through Environmental Attribute Certificates (EACs) to customers in the prime steel segment.
To prevent double counting, buyers of the physical non-prime steel will be contractually required not to make any environmental or green claims related to the material.
Stegra announced its first EAC agreement in September 2025, marking an early step in the development of a separate market for environmental attributes in steel. Agreements covering non-prime steel are seen as an important enabler for this emerging model, allowing green value to be allocated transparently while maintaining material efficiency across the broader steel market.
Building a pragmatic pathway to low-carbon steel
The partnership highlights how established materials service providers and next-generation steel producers can work together to support the transition to low-carbon steelmaking—balancing operational realities with new business models for decarbonisation.
As Stegra prepares to bring its Boden plant online and thyssenkrupp strengthens its role as a distribution and processing partner, the agreement underscores the importance of integrated value chains in scaling green steel production across Europe.
