Outokumpu Deal on Cargo Vessels Reduces CO2 Emissions

01 December 2021

Outokumpu signed a new deal on three cargo vessels with Langh Ship to reduce CO2 emissions in transports.

Outokumpu has agreed with its long-term transport partner, Finnish shipping company Langh Ship to replace the current three cargo vessels with new ships. The ships transport our coils from our mill in Tornio, Finland to our European hub in Terneuzen, the Netherlands, and return back to Tornio loaded with recycled steel, our main raw material. The first new ship will be taken into use in 2023.

The new vessels by Langh Ship are designed to meet Outokumpu’s ambitious sustainability targets in minimizing emissions and to comply with upcoming environmental regulation. The design has been developed in close cooperation between Outokumpu and Langh Ship. 

Outokumpu’s long-term climate target is to reduce its direct and indirect CO2 emissions as well as those of its supply chain (scopes 1, 2 and 3) to reach carbon neutrality by 2050. Outokumpu has this year committed to a more stringent climate target by the Science Based Targets initiative to keep the global warming below 1.5 degrees. To this end, Outokumpu will further reduce its CO2 emissions by 2030, approximately by 30% compared to 2020. In the beginning, the ships run on liquefied natural gas, but that can be directly changed to liquefied biogas without any changes.

“The route between Tornio and Terneuzen is of utmost importance to us in transporting coils to the European market and in bringing recycled steel to our melt shop in Tornio,” says Jyrki Sandelin, Category Manager for transports at Outokumpu. “With these three new vessels, we can reduce the CO2 emissions by 40% compared to the previous vessels.”

Our cargo ships take a one tour between Tornio and Terneuzen in two weeks and they transport some 1.6 million tonnes of cargo each year. With the new vessels, the capacity of each vessel rises to 7,250 tonnes from the current 6,000 tonnes, increasing the capacity of our transport ships by 100,000 tonnes. Our vessels transport nearly half of the recycled steel used in Tornio.

Courtesy of Outokumpu.