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SDI to Provide Steel for Mercedes Plant in Alabama

Written by Ethan Bernard

September 18, 2023

Steel Dynamics Inc. (SDI) and Mercedes-Benz have signed an agreement for the automaker to source 50,000 metric tons of C02-reduced steel for its plant in Tuscaloosa, Ala.

SDI’s flat-rolled steel made of 70% or greater recycled scrap content is being used in all Mercedes-Benz models built in Tuscaloosa, including the EQS SUV and EQE SUV, Mercedes said on Monday.

Both companies agreed to potentially increase the share of scrap in the near future, “which would reduce the carbon footprint even further,” the Germany-headquartered automaker said in a statement.

“In line with the company’s local-for-local approach, the supply agreement in the United States is part of a global effort to decarbonizing the Mercedes-Benz steel supply chain and follows several agreements on the procurement of CO2-reduced and almost CO2-free steel in Europe,” Mercedes added.

The Fort Wayne, Ind-based steelmaker’s product is made using electric-arc furnace (EAF) technology and “will use electricity from 100% renewable sources,” according to Mercedes.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

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