Gasgoo Munich- CITIC Pacific Special Steel has taken a further step in decarbonizing automotive supply chains, signing a Green Power Implementation Agreement with long-term partner ZF at the supplier's Asia-Pacific headquarters.Image source: ZFUnder the deal, selected steel grades supplied to ZF will be produced entirely using renewable electricity. The first batch of low-carbon steel is set to be deployed in a new electric vehicle program for a major global automaker, marking a shift toward emissions reduction at the raw materials stage.Yao Hailong, general manager of the bar steel sales unit at CITIC Pacific Special Steel, described the agreement as a milestone in joint efforts to cut emissions across the value chain. He emphasized that the two companies will leverage their respective strengths to advance sustainable manufacturing and build a model green supply chain. The initiative is also expected to support ZF Group's target of achieving carbon neutrality by 2040. During discussions, CITIC Pacific Special Steel outlined its low-carbon production processes, including near-zero-emission electric arc furnaces and renewable energy storage solutions designed to stabilize green power usage.Nicolas Flour, senior vice president for Asia-Pacific purchasing and global forging and metals sourcing at ZF, highlighted the two-decade partnership between the companies, built on openness and mutual trust. Over that period, the collaboration has steadily improved material performance, supply reliability, and manufacturing efficiency. With the latest agreement, the relationship is evolving beyond conventional sourcing into a broader alliance focused on sustainability. By integrating renewable electricity into production, both sides aim to establish a cleaner and more competitive supply system that delivers long-term value for customers and the wider industry.The agreement builds on a series of earlier milestones, including a memorandum of understanding on low-carbon steel signed in July 2024 and a broader sustainability partnership reached in September 2025. Together, these steps signal accelerating progress in building a greener supply chain for ZF in Asia-Pacific. More broadly, they reflect a shared long-term vision for low-carbon industrial transformation, marking the beginning of a deeper phase of cooperation centered on sustainability and emissions reduction.
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