ArcelorMittal Aims at Sustainable Steel Production, Acquires John Lawrie
A Brief Summary
ArcelorMittal, a multinational steel manufacturing corporation, announced its sustainable plans to step up the use of scrap steel to scale down carbon emissions. ArcelorMittal has acquired John Lawrie, a recycling company, to achieve its sustainable goals.
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John Lawrie is an industrial metals reuse and recycling specialist based in Aberdeen, Scotland, and has three other sites in the country. A few days ago, both companies agreed to the deal, and the terms were not disclosed.
ArcelorMittal says John Lawrie Metals uses high-quality scrap steel from the UK's oil and gas industry. The company sources half of its materials from the oil and gas market.
Steel scrap used in the production comes from the decommissioning of wells in the North Sea due to energy transition, ArcelorMittal says, and it expects the scrappage to grow further in the next decade.
ArcelorMittal's decarbonisation roadmap entails five key components. The first one is increasing the use of scrap steel in electric arc furnaces and blast furnace processes in steelmaking. The other components are improving blast furnaces, energy uses, implementing clean electricity and offsetting residual emissions.
Nucor, a company based in North Carolina, produces carbon-neutral steel with 100 per cent renewable electricity and carbon offsets. Companies such as BMW are stepping up green and recycled steel in their production units.
ArcelorMittal has a green steel program, which helps customers reduce Scope 3 emissions.
“We have identified strong potential for growth in the ferrous scrap processing business, with demand growth in Europe facilitated by the European Union’s initiatives to achieve higher metal recycling rates, reduce CO2 emissions and underpin the EU’s net-zero ambitions,” says Geert Van Poelvoorde, CEO ArcelorMittal Europe.
