SKF partners with Swiss Steel Group to sgnificantly reduce CO2 emissions

SKF has announced a major step in its sustainability efforts by partnering with Swiss Steel Group to drastically cut CO2 emissions associated with the production of its rolling bearings. Since the beginning of 2024, SKF has been sourcing exclusively "GreenSteel Climate+" from Swiss Steel Group and its subsidiary, Deutsche Edelstahlwerke (DEW). This steel is produced using electric arc furnaces powered by renewable energy sources, making it a more environmentally friendly alternative to traditional steel production.

Dieter Nitsche, Purchasing Manager at SKF in Schweinfurt, highlighted the significant climate impact of steel production. Traditional steel production via blast furnaces results in approximately two tons of CO2 emissions per ton of raw steel. "Given our substantial demand for steel and wire products, we have previously carried a significant greenhouse gas footprint," said Nitsche. By collaborating with Swiss Steel Group, which uses the electric steel route in its German facilities in Siegen and Witten, SKF has significantly reduced its CO2 emissions from steel procurement. The new contract with Swiss Steel Group is expected to cut the attributable greenhouse gas emissions of SKF’s steel by nearly 50%. "This represents a major advancement in our goal to achieve greenhouse gas neutrality across our value chain by 2050," Nitsche added. SKF is committed to operating all its global production sites climate-neutral by 2030 and achieving net-zero greenhouse gas emissions in its upstream supply chain by 2050.

SKF and Swiss Steel Group have been partners for over a decade, with their collaboration intensifying following the Ukraine crisis. The shift towards sustainable steel production was not anticipated at the time but has since proven advantageous. Swiss Steel Group has gained recognition as a leading sustainable steel producer, winning the German Sustainability Award last year. SKF and Swiss Steel Group share common climate goals, enhancing their progress towards these objectives. With an order placed in 2024 for several thousand tons of GreenSteel Climate+, SKF is now a key customer, ensuring a stable supply of this eco-friendly product. This steel is used both directly in SKF’s European manufacturing facilities, including its largest production site in Schweinfurt, and by SKF suppliers for producing rolling bearing rings.

Frank Koch, CEO of Swiss Steel Group, emphasized the importance of the contract for his company. "The agreement with a significant partner like SKF represents a major milestone in our efforts towards sustainable supply chains. GreenSteel Climate+ helps our customers reduce their CO2 footprint. As Europe's largest producer of electric arc furnace steel, our expertise lies in recycling, circular economy, and electric arc furnace technology. Our CO2 emissions are up to 83% below the industry average, and GreenSteel Climate+ is produced exclusively with renewable energy, further reducing emissions."

Dieter Nitsche also noted the importance of quality alongside climate considerations. "Our rolling bearing customers expect the highest quality and durability from SKF. After six months of using GreenSteel Climate+ at our German sites, we are on track in every respect."

Source: SKF, Photo: Fotolia