thyssenkrupp Materials Processing Europe announced that it has signed a multi-year agreement with Swedish green iron and steel maker Stegra to purchase non-prime steel from Stegra’s new facility in Boden, Sweden.
Stegra, founded in 2020, is developing its first large-scale green steel plant in Sweden. The company produces steel using hydrogen derived from renewable electricity and fully renewable energy sources in its operations.
thyssenkrupp Materials Processing Europe, a division of thyssenkrupp Materials Services, supplies processed steel products for automotive suppliers, construction firms and original equipment manufacturers (OEMs).
Under the agreement, thyssenkrupp will acquire non-prime steel from Stegra, a type of material that does not meet the highest quality standards required for certain applications but remains strong and suitable for diverse uses.
The new agreement follows the launch by Stegra of a new financing round in October 2025, Stegra, with the company looking to raise over $1 billion to fund the completion of its new green steel plant.
Stephan Flapper, Head of Commercial at Stegra, said:
“A partner for non-prime steel is important for the ramp up of our steel mill and we see this as the start of a long-term partnership with thyssenkrupp Material Services as a key player in the market. Together we can drive an even strong pull for steel products made via the green hydrogen route.”
Deliveries under the new agreement are expected to begin in 2027, with the total tonnage of the deal reaching the high-six-digit range. The steel will be primarily non-prime material, intended to supply thyssenkrupp’s customers across multiple European industries.
While Stegra’s production process is powered by hydrogen and renewable electricity, the non-prime steel sold to thyssenkrupp will not be classified as CO₂-reduced, as Stegra intends to sell the associated green value as Environmental Attribute Certificates (EACs) to other customers in the prime steel market.
Buyers of the physical steel will be required to refrain from making green claims, ensuring accurate reporting and avoiding double counting of emission performance.
Stegra previously announced its first agreement for EACs in September 2025, highlighting the growing role of non-prime steel in supporting the market for environmental attribute certificates in Europe.
Heather Wijdekop, CEO of the processing business unit at thyssenkrupp Materials Services, said:
“We have the customer base, the logistics capabilities and the processing network to handle these large amounts of steel. At the same time, we are also teaming up with Stegra to support the ramp-up of their large-scale facilities in Boden and their efforts to decarbonize the steel industry.”
