 |
| Tungsten supply chain |
Ceratizit S.A. is actively bolstering its tungsten recycling capabilities to ensure a resilient and integrated supply chain for its cutting tool production. The Luxembourg-based firm recognizes that securing tungsten supply remains a defining challenge for the European metalworking industry. Consequently, Ceratizit prioritizes keeping tungsten-containing scrap within European loops to enhance supply security and competitive positioning. This strategy directly addresses the reality that China currently controls over 80 percent of global tungsten production.
Building Resilience via Integrated Value Chains
The company leverages its position within the Plansee Group to maintain full control over the tungsten recycling value chain. By integrating metal powder production, carbide manufacturing, and finished tool creation, Ceratizit minimizes its exposure to volatile market fluctuations. Furthermore, its subsidiary, Stadler Raw Materials, acts as a primary engine for collection, functioning as Europe’s largest trader of tungsten scrap. Therefore, the company effectively channels recovered materials back into its Western recycling network, ensuring high-quality feedstock for future production.
Achieving Circularity and Compliance
Ceratizit successfully demonstrated its operational efficiency by achieving a tungsten recycling rate exceeding 90 percent in its most recent fiscal year. This circular approach significantly reduces the firm’s reliance on primary raw materials while strengthening long-term supply resilience. In addition to these environmental efforts, the company ensures full transparency by utilizing Responsible Mineral Initiative-conformant smelters. As a result, Ceratizit provides its customers with the necessary compliance and traceability needed in today’s increasingly regulated global industrial landscape.
ScrapInsight Commentary
Ceratizit’s model demonstrates the critical necessity for European industrial players to verticalize their recycling operations to offset dependency on dominant non-European suppliers.
We expect an increase in similar "closed-loop" investment strategies as the EU's raw material security mandates tighten, likely driving up the valuation of high-quality scrap collectors.
Ultimately, high-rate recycling (90%+) will serve as a key competitive moat for tool manufacturers facing rising primary raw material costs.
