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Fossil-free steel pioneered in cargo handling industry

Fossil-free steel pioneered in cargo handling industry

(Posted on 07/09/21)

Cargotec and SSAB have agreed to work on the introduction of fossil-free steel to the cargo handling industry. The intent outlines that the companies will start coordinated development toward the use of SSAB’s fossil-free steel in Cargotec’s cargo handling equipment.

Cargotec's business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec

This is a strategic partnership for the benefit of both parties and end customers. It represents a significant milestone in moving toward a sustainable development and a fossil-free product offering.

“I am proud that we are paving the way in the cargo handling industry through commitment to using fossil-free steel and have this unique opportunity to work with a forerunner in fossil-free steel development. This is an important step towards our vision of becoming a leader in sustainable cargo flow,” says Mika Vehviläinen, CEO of Cargotec.

“We are happy to welcome Cargotec as a partner for fossil-free steel products. Close collaboration with the development of a fossil-free value chain means we contribute to strengthening our customers’ competitiveness and to reducing their carbon footprint. Together, we also ensure the best solutions for end users,” says Martin Lindqvist, President and CEO of SSAB.

Steel and steel components are the main contributors for CO2 footprint at Cargotec’s scope 3 (value chain) upstream emissions. The total CO2 footprint comprises upstream emissions, which account for over a third of Cargotec’s total emissions, emissions from own operations (scope 1 and 2), and emissions from the use-phase of the products (scope 3 downstream). Fossil-free steel has significantly lower environmental impact and hence, contributes towards a carbon neutral value chain. It has been estimated that steel demand will increase in the future and hence, meeting this demand requires development and usage of fossil-free steel alternatives.

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