Steel

Leading-edge technology from Germany is driving the decarbonisation of the US steel industry: In Osceola,Arkansas, a new state-of-the-art rebar plant is being built by Hybar, a scrap metal recycling and steel production company with a focus on environmentally friendly steelmaking. The SMS group supplies the state-of-the-art, low-emission and energy-efficient steel plant technology with a high share of added value from Germany. Due to its particularly low carbon footprint, the plant is one of the most sustainable production plants for rebar worldwide. In the future, it will be connected directly to a neighbouring solar park and thus enable operation with renewable energy.

KfW IPEX-Bank is participating in the financing of the new plant with a loan of up to USD 150 million. A substantial part of the funds will be used to finance the steel plant technology supplied by SMS group and will be covered by the German export credit insurance company Euler Hermes.

Financing example Hybar at a glance

• Project profile: Construction of a state-of-the-art, energy-efficient rebar plant in Osceola, Arkansas
• Borrower: Hybar
• Supplier: SMS group (high value-added share from Germany)
• KfW IPEX-Bank's contribution: Loan volume up to USD 150 million; funds used for low-emission and energy-efficient steel plant technology
• Risk coverage: cover of the German export credit insurance Euler Hermes
• Sustainability: CO2 emissions up to 50 per cent lower than in other leading rebar plants; sustainability through renewable energy