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VELUX Group signs long-term agreement with ArcelorMittal to supply low carbon-emission steel

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The VELUX Group has signed a 10-year agreement with ArcelorMittal for the supply of recycled and renewably produced steel. This partnership aims to reduce the carbon footprint of steel used in VELUX roof windows by up to 70% compared to conventional steel. By 2025, VELUX plans to incorporate ArcelorMittal's XCarb® steel in several components of their roof windows.

XCarb® is manufactured with a minimum of 75% recycled steel and uses 100% renewable electricity. It is produced in an electric arc furnace powered by renewable energy sources at ArcelorMittal's facility in Northern Spain. This initiative is part of VELUX's broader strategy to reduce its scope 3 upstream emissions by 50% by 2030.

Il Gruppo VELUX ha firmato un accordo di 10 anni con ArcelorMittal per la fornitura di acciaio riciclato e prodotto in modo rinnovabile. Questa partnership mira a ridurre l'impronta di carbonio dell'acciaio utilizzato nei serramenti per tetti VELUX fino al 70% rispetto all'acciaio convenzionale. Entro il 2025, VELUX prevede di incorporare l'acciaio XCarb® di ArcelorMittal in diversi componenti dei propri serramenti per tetti.

L'acciaio XCarb® è realizzato con un minimo del 75% di acciaio riciclato e utilizza 100% di elettricità rinnovabile. È prodotto in un forno ad arco elettrico alimentato da fonti di energia rinnovabile nello stabilimento di ArcelorMittal nel nord della Spagna. Questa iniziativa fa parte della strategia complessiva di VELUX per ridurre del 50% le emissioni upstream di scopo 3 entro il 2030.

El Grupo VELUX ha firmado un acuerdo de 10 años con ArcelorMittal para el suministro de acero reciclado y producido de manera renovable. Esta asociación tiene como objetivo reducir la huella de carbono del acero utilizado en las ventanas de techo VELUX en hasta un 70% en comparación con el acero convencional. Para 2025, VELUX planea incorporar el acero XCarb® de ArcelorMittal en varios componentes de sus ventanas de techo.

El acero XCarb® se fabrica con un Mínimo del 75% de acero reciclado y utiliza 100% electricidad renovable. Se produce en un horno de arco eléctrico alimentado por fuentes de energía renovable en la planta de ArcelorMittal en el norte de España. Esta iniciativa forma parte de la estrategia más amplia de VELUX para reducir sus emisiones upstream de alcance 3 en un 50% para 2030.

VELUX 그룹ArcelorMittal10년 계약을 체결하고 재활용 및 재생 가능 방식으로 생산된 강철을 공급받기로 했습니다. 이 파트너십은 VELUX 지붕 창문에 사용되는 강철의 탄소 발자국을 기존 강철에 비해 최대 70%까지 줄이는 것을 목표로 합니다. 2025년까지 VELUX는 ArcelorMittal의 XCarb® 강철을 여러 지붕 창문 구성 요소에 통합할 계획입니다.

XCarb®는 최소 75%의 재활용 강철로 제조되며 100% 재생 가능 전력을 사용합니다. 이 제품은 스페인 북부의 ArcelorMittal 시설에서 재생 에너지원으로 운영되는 전기 아크로너에 의해 생산됩니다. 이 이니셔티브는 VELUX의 2030년까지 범위 3 전 upstream 배출량을 50% 줄이는 것을 목표로 하는 더 큰 전략의 일환입니다.

Le Groupe VELUX a signé un contrat de 10 ans avec ArcelorMittal pour la fourniture d'acier recyclé et produit de manière renouvelable. Ce partenariat vise à réduire l'empreinte carbone de l'acier utilisé dans les fenêtres de toit VELUX de jusqu'à 70% par rapport à l'acier conventionnel. D'ici 2025, VELUX prévoit d'incorporer l'acier XCarb® d'ArcelorMittal dans plusieurs composants de ses fenêtres de toit.

L'acier XCarb® est fabriqué avec un minimum de 75% d'acier recyclé et utilise 100% d'électricité renouvelable. Il est produit dans un four à arc électrique alimenté par des sources d'énergie renouvelables dans l'usine d'ArcelorMittal au nord de l'Espagne. Cette initiative fait partie de la stratégie plus large de VELUX visant à réduire ses émissions en amont de portée 3 de 50% d'ici 2030.

Die VELUX Gruppe hat einen 10-Jahres-Vertrag mit ArcelorMittal über die Lieferung von recyceltem und erneuerbar produziertem Stahl unterzeichnet. Diese Partnerschaft zielt darauf ab, den CO2-Fußabdruck des in VELUX-Dachfenstern verwendeten Stahls um bis zu 70% im Vergleich zu herkömmlichem Stahl zu verringern. Bis 2025 plant VELUX, den XCarb® Stahl von ArcelorMittal in mehreren Komponenten ihrer Dachfenster zu integrieren.

XCarb® wird mit mindestens 75% recyceltem Stahl hergestellt und verwendet 100% erneuerbare Energie. Er wird in einem elektrischen Lichtbogenofen produziert, der von erneuerbaren Energiequellen in der ArcelorMittal-Anlage im Norden Spaniens betrieben wird. Diese Initiative ist Teil von VELUXs umfassenderer Strategie zur Reduzierung der Scope-3-Emissionen in der Wertschöpfungskette um 50% bis 2030.

Positive
  • Long-term 10-year agreement for low carbon-emission steel supply
  • Potential 70% reduction in carbon footprint for steel components
  • Gradual increase in XCarb® steel usage by 2025
  • XCarb® steel manufactured with minimum 75% recycled content
  • 100% renewable electricity used in XCarb® production
Negative
  • None.

Insights

This agreement marks a significant step towards reducing carbon emissions in the construction industry. By incorporating XCarb® steel with up to 70% lower carbon footprint, VELUX is addressing a important aspect of its scope 3 emissions. The 10-year commitment demonstrates long-term dedication to sustainability and could set a new standard for the industry.

The gradual implementation, reaching full integration by 2025, allows for a smooth transition and optimization of processes. This approach could potentially influence other companies to adopt similar strategies, creating a ripple effect in the supply chain. The focus on recycled content (minimum 75%) and renewable energy usage aligns with circular economy principles, which are increasingly important for investors considering ESG factors.

While the immediate impact on VELUX's overall emissions (5.7% of scope 3) may seem modest, it's a important step towards their 50% reduction target by 2030. This proactive approach to supply chain decarbonization could enhance VELUX's reputation and potentially lead to increased market share among environmentally conscious consumers.

The adoption of XCarb® steel by VELUX represents a significant technological advancement in construction materials. The use of electric arc furnaces powered by renewable energy for steel production is a cutting-edge approach that addresses both recycling and energy efficiency concerns. This method not only reduces carbon emissions but also potentially improves the quality and consistency of the steel produced.

The successful testing and validation of XCarb® for roof window components demonstrate its viability as a direct replacement for conventional steel. This is crucial, as it suggests that the transition can occur without compromising product performance or durability. The gradual implementation strategy allows for continuous refinement and optimization of the material's properties for specific applications.

Looking ahead, the ongoing investigations into further carbon footprint reductions indicate potential for additional innovations. This could lead to even more advanced materials or production processes, potentially giving VELUX and ArcelorMittal a competitive edge in the green construction materials market.

The VELUX Group has entered a 10-year agreement with ArcelorMittal concerning the supply of recycled and renewably produced steel.

In 2023, the two companies agreed to enter a partnership to lower the carbon footprint of the steels used in VELUX roof windows by up to 70 percent, compared with conventionally produced steel. This co-operation involved the testing and validation of ArcelorMittal’s XCarb® recycled and renewably produced steel and its performance in VELUX roof window hinges and installation brackets.

Successful results have now culminated in the signing of this 10-year commercial agreement which outlines a framework for steel supply. VELUX is now gradually increasing order intake so that by 2025, XCarb® will be used in several steel components for VELUX roof windows, replacing the conventionally produced steel that was previously used.

“Steel is an important material to ensure the strength and durability of our products and traditionally it’s a significant contributor to our carbon emissions,” says Jesús Villalba, Senior Director, Direct Procurement at VELUX Group. “We are pleased to be reducing its impact through this agreement, which proves that through co-engineering and collaboration with our suppliers, we can reduce our value chain emissions.”

 

Metals (excluding aluminium), of which steel constitutes the main part, accounts for 5.7 percent of the VELUX Group’s total scope 3 emissions.

XCarb® is manufactured with a minimum of 75% recycled steel and by using 100% renewable electricity. An electric arc furnace powered by renewable energy sources is used to manufacture XCarb® at an ArcelorMittal production facility in Northern Spain. Investigations are underway to work on further reductions of the carbon footprint of the steel delivered by ArcelorMittal to VELUX.

The long-term agreement between our companies sends a powerful message about the importance of steel in the decarbonisation of the everyday materials that we all use. I would like to thank VELUX for their partnership on this project, and for their leadership in committing to use low carbon-emissions steel for their products” said Laurent Plasman, CMO Industry, ArcelorMittal Europe – Flat Products.

Steel is one of several key materials VELUX Group is investigating together with its suppliers to help achieve reductions in its product and overall carbon footprint. The VELUX target is to reduce its scope 3 upstream emissions by 50% by 2030.


About the VELUX Group
VELUX roof windows have been bringing daylight and fresh air into peoples’ homes around the world for more than 80 years, creating better living environments. We offer a range of products including roof windows and modular skylights, decorative blinds, sun screening products, and roller shutters, as well as installation and smart home solutions. They help create bright, healthy, and energy-efficient places for people who live, work, learn, and play under the roof. We work globally – with sales and manufacturing operations in 37 countries and around 11,900 employees worldwide. The VELUX Group is owned by VKR Holding A/S, a limited company owned by the Villum Foundation and Kann Rasmussen family members. In 2023, the VELUX Group had a total revenue of EUR 2.91 billion while VKR Holding had a total revenue of EUR 3.97 billion. The same year, the Villum Foundation and the VELUX FOUNDATION donated a total of EUR 184.6 million in charitable grants.

For more information about the VELUX Group, visit velux.com

About ArcelorMittal

ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 15 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2023 generated revenues of $68.3 billion, produced 58.1 million metric tonnes of crude steel and, 42.0 million tonnes of iron ore. Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

Contact:
Yvette Roper
Senior Global Media Relations Manager, the VELUX Group
yvette.roper@velux.com
+45 30 47 59 42

Sophie Evans
Head of communications, ArcelorMittal Europe
ArcelorMittal
Sophie.Evans@arcelormittal.com
+44 7825 595 849


FAQ

What is the duration of the agreement between VELUX Group and ArcelorMittal for low carbon-emission steel?

The agreement between VELUX Group and ArcelorMittal for low carbon-emission steel supply is for a duration of 10 years.

How much can VELUX reduce the carbon footprint of steel used in their roof windows with XCarb®?

VELUX can reduce the carbon footprint of steel used in their roof windows by up to 70% compared to conventionally produced steel by using ArcelorMittal's XCarb® steel.

What percentage of recycled steel is used in the production of XCarb®?

XCarb® is manufactured with a minimum of 75% recycled steel.

What is VELUX Group's target for reducing scope 3 upstream emissions by 2030?

VELUX Group's target is to reduce its scope 3 upstream emissions by 50% by 2030.

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