Saarstahl Rail, a subsidiary of Saarstahl AG, has entered into a significant long-term agreement with SNCF Réseau, the French national rail infrastructure company, for the supply of environmentally friendly, CO2-reduced rails. The contract, valued at over EUR 1 billion and spanning up to six years, is a major step in sustainable rail production.
Saarstahl Rail is the sole rolling mill in Europe producing rails made with steel manufactured in an electric arc furnace, a process conducted by Saarstahl Ascoval, another subsidiary of Saarstahl AG located in Saint-Saulve, France.
“This contract underscores the quality and environmental benefits of our products, securing nearly 1,000 jobs at both locations. It also enables further investment in Saint-Saulve and Hayange, ensuring the future competitiveness of both facilities,” said Dr. Nadine Artelt, President of Saarstahl Rail and Saarstahl Ascoval.
The electric arc furnace production process, paired with Saarstahl Rail’s recycling program for used rails, reduces CO2 emissions by up to 70% compared to traditional blast furnace methods reliant on iron ore and coal. The SNCF Réseau partnership is projected to cut annual carbon emissions by 200,000 tons, amounting to over one million tons of CO2 saved during the contract’s six-year term. This reduction is equivalent to the emissions from Germany’s transport sector over 2.5 days.
Saarstahl’s sustainability initiatives have earned industry recognition, including the Sustainability Championship Award from the Berlin Institute Supply Chain Management. Chairman of Saarstahl’s Board of Management, Stefan Rauber, emphasized the company’s commitment to environmentally friendly innovation. “Our products are key to advancing sustainable mobility within the global rail industry,” said Rauber.
“This contract establishes us as a leader in decarbonized steel production. We are proud to contribute to the French rail network’s eco-friendly expansion and support SNCF Réseau’s decarbonization goals,” Jonathan Weber, Board member overseeing Saarstahl Rail and Saarstahl Ascoval, added.
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