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ArcelorMittal and Snop sign sustainability MoU and trial car part using low-carbon emissions steel

ArcelorMittal, the world’s leading steel and mining company, and Snop, a major tier-one European automotive supplier, have signed a sustainability-focussed memorandum of understanding (MoU) this morning at Snop’s headquarters in Villepinte, France. The agreement also includes a commitment to trial the use of high strength, low carbon-emissions steel in structural car parts. The MoU seeks to strengthen the two companies’ cooperation on environmental sustainability, specifically through the use of XCarb® solutions that contribute to the decarbonisation of the automotive sector. XCarb® is the name under which all ArcelorMittal’s low-carbon emissions products and all decarbonization initiatives are grouped.

The MoU includes an agreement to trial the use of Usibor®, a high-strength steel, made using ArcelorMittal’s XCarb® recycled and renewably produced steel. More broadly, the MoU covers the supply and purchase of other XCarb® solutions including XCarb® green steel certificates.

Usibor® manufactured with XCarb® recycled and renewably produced substrate, typically has a CO2 footprint that is almost 70% lower compared with conventionally produced steel. High-strength structural car parts, used in the frame of a vehicle, have already been manufactured by the Snop and ArcelorMittal teams, with the first tests of the parts underway.

Speaking at the ceremony, Pierre Mainguy, Purchasing Director at Snop, said:

“We are delighted to have signed this agreement with ArcelorMittal, a major and strategic supplier within our ecosystem. As steel represents 96% of Co2 emissions linked to Snop’s purchases, this agreement goes beyond reinforcing our longstanding partnership with ArcelorMittal and is an important step towards achieving our goal of reducing our supply chain emissions (scope 3) by 30% by 2030 as well as reaching net zero by 2050. Moving forward, we will be contributing to the reduction of vehicle carbon emissions, a major environmental challenge, while maintaining the high levels of quality needed to satisfy our customers.”

Yves Koeberlé, CEO, ArcelorMittal Europe – Flat Products, added:

“We have been working closely with Snop, our valued customer and partner, for many years and the relationship has evolved in line with the changes in the automotive industry. Having a sustainability-focussed MoU is a major step forward in our work with them, to reduce CO2 emissions created during the production of steel for the automotive sector. The endorsement of our key customers is crucial to the success of our decarbonisation initiatives, so I would like to thank Snop for their support, in particular in the last few months as we have been developing the MoU which we have signed today”.  

ArcelorMittal Europe has a target to reduce CO2 emissions by 35% by 2030, and to reach carbon neutrality by 2050. XCarb® recycled and renewably produced for flat products has been in production at ArcelorMittal’s Sestao plant since 2022 and is made via the Electric Arc Furnace route using high levels of scrap steel and 100% renewable electricity for steelmaking.

About Snop

Snop is a major tier-one supplier to the automotive industry in Europe. We develop and manufacture Body-In-White stampings and assemblies, complex assemblies, Class A surface parts and roll-formed parts. Our manufacturing capabilities enable us to serve the lightweight trend of the automotive industry, for example hot forming and aluminum forming, and use of other UHSS technologies.

Snop is a division of the Groupe Financière Snop Dunois (Groupe FSD), a privately owned major automotive supplier with established relationships to all European OEMs. Groupe FSD employs over 8,200 colleagues in fourteen countries at more than 40 production sites and five technical centers. Its largest division is Snop and has two other divisions that design and manufacture stamping dies and automatic presses.