Georgsmarienhütte, October 21, 2025
Green steel for Tomorrow’s Mobility
Georgsmarienhütte GmbH and Volkswagen AG strengthen their long-standing partnership with ‘Green Power Premium Steel’, which offers 98% fewer CO₂ emissions in operation.
Georgsmarienhütte GmbH, a unit of GMH Gruppe, is taking its partnership with Volkswagen AG to the next level in the drive towards decarbonisation. Beginning in 2025, Volkswagen will rely on ‘Green Power Premium Steel’ from Georgsmarienhütte – a groundbreaking low-carbon steel that will be used in the in-house production of transmission components.
This high-quality special steel is produced in an electric arc furnace powered entirely by renewable energy and enhanced by the use of certified biogenic coal. This premium steel reduces CO₂ emissions by up to 98% (Scope 1 and 2) compared with conventionally produced blast furnace steel. Even when considering Scope 3 emissions, ‘Green Power Premium Steel’ achieves a significant reduction of up to 78% in emissions.
“Our partnership with Volkswagen demonstrates what the future of industry can look like. With Green Power Premium Steel, we are not only supplying a product – we are tackling the urgent challenges of climate change. Our integration of 100% green electricity, biogenic coal, and transparent CO₂ accounting sets new standards in the entire steel sector,” said Dr. Alexander Becker, CEO of the GMH Gruppe.
From Scrap to Steel: Closing the Loop
Since 2021, Volkswagen and Georgsmarienhütte have been pioneers in circular economy initiatives. Through an innovative closed material cycle, steel scrap from various Volkswagen plants is returned to Georgsmarienhütte´s electric steel mill, where it is repurposed into high-quality new steel. This closed-loop system not only conserves resources but also demonstrates how sustainable value creation can operate in practice.
In recognition of this pioneering collaboration, the GMH Gruppe was honoured as the Volkswagen Group’s Most Sustainable Supplier in 2023.
About GMH Gruppe
GMH Gruppe is a full-service provider of steel products, ranging from scrap-based steelmaking to ready-to-install components. It is one of Europe’s largest privately owned metal-processing companies. The group comprises more than 20 medium-sized sites of the steel, forging and casting industries, serving customers in over 50 countries. With around 6,000 employees, GMH Gruppe generates annual revenues of approximately 2 billion euros.
GMH Gruppe is a pioneer in sustainable steel production and a member of the ‘German Association of Climate Protection Companies’. By recycling metal scrap, the company produces green steel and contributes to a circular economy. Electric arc furnaces at four sites reduce CO2 emissions by a factor of five compared to conventional blast furnaces – thus significantly lowering the carbon footprint for GMH customers worldwide. These include companies from the automotive, mechanical engineering, railway, energy, logistics, aerospace, agriculture and construction machinery sectors.
GMH Gruppe is committed to achieving full climate-neutrality by 2039.
www.gmh-gruppe.de/en/.
For inquiries
GMH Gruppe
Luciana Filizzola
Director Sustainability and Communications