KfW IPEX-Bank: Financing for sustainable steel production in the US

• Low-emission and energy-efficient steelworks technology
• Supplies from SMS group

KfW IPEX-Bank is providing a loan of up to USD 150 million to finance a new state-of-the-art, energy-efficient rebar steel mill which is currently being constructed in Osceola, Arkansas.

The mill is being built by Hybar, a scrap metal recycling and steel production company focused on environmentally friendly steel production. The funds will be largely used to finance the state-of-the-art, low-emission and energy-efficient steelworks technology, which is supplied by SMS group with a high share of added value from Germany; this portion will be covered by the German export credit insurance Euler Hermes.

The mill has a very low CO2 footprint, cutting emissions by up to 50 per cent compared with other leading rebar steel mills. The mill will also be directly connected to a neighbouring solar park and thus enable 100% operation with renewable energy in the future.

Hybar will be one of the most energy-efficient and environmentally sustainable rebar steel production facilities in the world after its completion planned for 2025, and will be the first rebar mill in the world to receive LEED (Leadership in Energy and Environmental Design) certification.

“Recycling and the sustainable production of steel play a key role in global decarbonisation and the transformation to climate neutrality,” says Dr Velibor Marjanovic, Member of the Management Board of KfW IPEX-Bank. “We’re delighted to support our new customer Hybar in this flagship project by financing cutting-edge German technology and so underscoring our aspiration to further advance global energy transition projects through the export of European technology.”