The recycled content of Outokumpu's steel is 90%

For Outokumpu, the most important raw materials used in producing stainless steel are recycled stainless steel and recycled carbon steel. Together with metals recovered from waste and by-products of the production process, they raise the recycled content of stainless steel produced by the Group. The recycled content of Outokumpu stainless steel is approximately 90%, and higher than the global industry average of 60% (according to the International Stainless Steel Forum ISSF). In addition to the recycled steel, alloying elements are also required. These include iron-containing alloys and other metals such as chromium, nickel and molybdenum.

Slag and dust are produced as by-products of the steelmaking process. Considerable research and development effort has been invested by Outokumpu in methods of retrieving valuable metals from this slag and dust as these can be recycled as raw materials in the Group's melt shops. For example, to minimise emissions into the environment, filters collect more than 99% of the dust generated by the Group's production operations. All of the dust generated by the company's melt shops is recycled. Dust fractions with the highest metal content are recycled directly, and the remainder of the collected dust is recycled following metal recovery. In the Nordic region this residue is sent to an external facility in Sweden which treats the dust to recover the metals it contains. In the UK, there is a metal recovery facility on site.

There are many phases in the life-cycle of stainless steel products. It is Outokumpu's aim to improve the sustainability of each phase – from production to re-use. Outokumpu's sustainable supply chain from supplier of recycled steel to production of stainless steel productions.

Improved waste utilisation and less landfill waste

Outokumpu has the twofold aim of improving levels of efficiency in using materials and reducing the quantities of waste sent to landfills. By paying special attention to waste management and segregation techniques, many waste fractions are now recycled and the amount of waste sent to landfills has been reduced.

In Tornio, a full-scale process involving a local contractor has been established to recycle refractories and linings from melt shops by crushing and reprocessing them. The reprocessed material is used as a substitute for virgin material such as lime in the melt shop. This technique also reduces the amount of waste sent to landfill and improves metal recovery rates.

Outokumpu's melt shop in Sheffield continues to increase the quantities of stabilised and solid slag sold as roadstone. During 2009, some 84% of all slag from the melt shop was recycled in this manner.

Hydroflux, a product developed by Outokumpu, is made using descaling waste generated on the Group's stainless steel annealing and pickling lines. It can be used to replace the calcium fluoride used as a flux in stainless steel slag management. The aim is to enable full scale utilisation. 

Entire life-cycle taken into account, 20% increase in recycled content corresponds avoidance of CO2 emissions of 1.2 tonnes per tonne of stainless produced.

Maximising economic value while minimising the environmental burden

Achieving the Outokumpu vision of being the undisputed number one in stainless steel, means in environmental matters creating the highest possible amount of economic value using the lowest possible levels of resources while reducing any resulting ecological burden to an absolute minimum. With this in mind, the Group has bult up a model to develop an internal environmental value chain. Environmental costs and the resources employed in running processes and manufacturing products are evaluated from a value creation perspective, with aim that resources are employed in the most efficient ways possible.

Assessing each value creation phase by comparing it with the environmental consequences and material requirements by grade and by process allows Outokumpu to maximise the eco-efficiency of the Group's production. This model was created under a project called ENO (Environmentally number one) during 2007–2009. Although the project was ended in the beginning of 2009, the model is still valid. Adopting a value added approach has provided extremely useful information about material flows and streams. Since the model is able to provide a measurement of the eco-efficiency of Outokumpu's commercial value creation processes, the ENO approach is viewed as one of the best ways to encourage sustainable production. It is also very helpful when deciding the most efficient environmental investments.

A good example is the recycled content in stainless steel. Raising this from an average of 70% to an average of 90% drastically reduces the environmental burden which results from manufacturing stainless steel. Recycled input replaces the virgin materials that would otherwise have been required, and this affects the whole supply chain. If the entire life-cycle is taken into account, a 20% increase in recycled content corresponds to the avoidance of carbon dioxide emissions totalling 1.2 tonnes per tonne of stainless steel. At the 2009 production level of 1.2 million tonnes, the tonnage of carbon dioxide emissions avoided in this way would equal 1.4 million tonnes.

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