VELUX Group and ArcelorMittal enter a 10-year agreement to transition to low carbon-emissions XCarb^® steel supply

VELUX Group, the iconic roof window company, has entered into a 10-year agreement with ArcelorMittal for the supply of low carbon-emissions steel. A new step in a long-lasting partnership, going back more than a decade, during which both companies have developed a growing portfolio of steel applications for VELUX’s products, with the recent introduction of stronger, more corrosion resistant Magnelis^® steel, which has supported VELUX’s strong commitment to sustainability.

VELUX Group is recognised globally for its roof windows

After comprehensive technical trials by VELUX, ArcelorMittal’s XCarb^® recycled and renewably produced steel has fully met VELUX’s specifications for transitioning to low carbon-emissions steel. The transition to XCarb^® steel has already started and will have reached over 50% of ArcelorMittal’s steel supply to VELUX by early 2025. Once fully completed, the transition will deliver a reduction in the carbon footprint of the steels used in VELUX roof windows by up to 70%, compared to conventionally produced steel.

XCarb^® steel is a real game changer in our industry

XCarb^® recycled and renewably produced steel is manufactured with a minimum of 75% recycled steel and 100% renewable electricity. An Electric Arc Furnace powered by renewable energy sources (primarily hydrogen) is used to manufacture XCarb^® recycled and renewably produced steel. The electricity used in the steelmaking process is independently verified, with a ‘Guarantee of Origin’ that it is from renewable sources.

The XCarb^® steel making process produced by Electric Arc Furnace and made with >75% steel scrap

Jesús Villalba, Senior Director, Direct Procurement at the VELUX Group and Laurent Plasman, Chief Marketing Officer, ArcelorMittal Europe – Flat Products Industry

“High specification steel is an important material to ensure the strength and durability of our windows, and traditionally has represented a significant contribution to our carbon emissions,” says Jesús Villalba, Senior Director Direct Procurement, VELUX Group. “At VELUX, we have committed to reduce our operational emissions to near zero and to halve our value chain carbon emissions by 2030. This important agreement with ArcelorMittal proves that, through close collaboration and co-engineering with key suppliers, we can deliver substantial reductions in emissions. And we are keen to take this further and to expand the applications of XCarb^® in our products in due course.”

ArcelorMittal steel is processed mainly in the VELUX plants in Poland.

Laurent Plasman, CMO Industry ArcelorMittal Europe - Flat Products commented: “We are delighted to conclude this significant agreement after many months of hard work with Jesús and his colleagues at VELUX. We're pushing the boundaries of what we thought was possible when we launched XCarb^® four years ago. We are proud and committed to be part of the VELUX Group’s carbon reduction programme, and in setting an example to the whole of its value chain, so that suppliers join with them and us on the sustainability journey.”

Another key step in a long-lasting partnership

“Our steels are a very good fit for the tough, durable applications that VELUX needs,” says Tomasz Plaskura, CMO East Europe ArcelorMittal Europe – Flat Products, “and we can also provide the assurance of our global reach and security of supply. We have been supplying VELUX for over 10 years now and introduced Magnelis^® steel to them in 2021, based on its sustainable footprint and tolerance of extreme environmental conditions, which are well suited to VELUX products. Providing Magnelis^® in XCarb^® steel has ticked lots of boxes for VELUX.”

Pawel Patyk is Head of the Client Technical Support Team for the Region East North at ArcelorMittal and played an active role in strengthening the relationship between VELUX and ArcelorMittal: “This agreement, and the overall partnership, has been built on strong collaboration from teams across both companies. At ArcelorMittal, we take pride in understanding the needs of our clients and have spent considerable time seeking to align our product offering with the VELUX Group’s values and strategy, not least in their journey to Net Zero.”

Going further

The VELUX Product and Innovation team is collaborating closely with ArcelorMittal’s Global R&D team to trial the use of XCarb^® in the full VELUX product portfolio and to investigate further applications to use low carbon-emissions steel where possible.

Christian Wagner, Senior Vice President Advanced Material Technology at the VELUX Group, adds: "step by step, within the frame of our long-term agreement, we will look into more solutions and opportunities, one of them being the increase in the use of high strength steel. These advanced alloys mean less material consumption - a valuable contribution to decarbonisation."

Rafal Nawrat, CEO of ArcelorMittal’s Steel Service Centres in Poland, adds : “alongside this agreement, and in sync with the VELUX Group’s carbon reduction plans, we are working on a number of related initiatives such as the construction of a ground-mounted solar PV installation at our mill in Bytom in Poland in 2025, a switch to reusable recycled pallets, and fundamental changes in our transport logistics - through maximising the use of cargo trains with much lower carbon emissions per tonne of cargo than road haulage, together with the initial introduction of electric trucks.”