GMH Group deepens partnership with Volkswagen for future mobility

The Georgsmarienhütte GmbH, part of the GMH Group, is expanding its long-standing cooperation with Volkswagen AG in support of industrial decarbonisation. Starting in 2025, Volkswagen will source the newly developed “Green Power Premium Steel” from Georgsmarienhütte for in-house production of gearbox components.

The high-grade engineering steel is produced in an electric arc furnace (EAF) using 100% renewable electricity and biogenic carbon as a reducing agent. This manufacturing route reduces the CO₂ footprint by up to 98% (Scope 1 and 2) compared with conventional blast furnace steelmaking. Even when including Scope 3 emissions, a reduction of up to 78% can be achieved.

“Our collaboration with Volkswagen is a strong example of industrial transformation,” said Dr. Alexander Becker, CEO of the GMH Group. “With Green Power Premium Steel, we deliver not just a product but a solution to the challenges of climate change. Combining 100% green power, biogenic carbon, and precise carbon accounting sets new standards for the steel industry.”

From scrap to steel: a closed recycling loop

Since 2021, Volkswagen and Georgsmarienhütte have been operating a closed-loop recycling project. Steel scrap generated in Volkswagen’s production facilities is returned to Georgsmarienhütte’s EAF plant, where it is remelted into new, high-quality steel for further use in the automotive supply chain.

In recognition of this circular model, the GMH Group was named Volkswagen’s most sustainable supplier in 2023.

Soruce and Photo: GMH Group