Soudobeam: towards a more circular steel industry

This article is part of a series dedicated to exploring the journeys of the winners of Go Circular 2. In this series, we highlight the inspiring initiatives of these winners. One of them, Soudobeam, in the ‘transition’ category, is developing a model based on repair and reuse.

Lances redesigned to last These lances, designed, produced and distributed by Soudobeam for over 20 years, are subjected to extreme conditions, with temperatures reaching 1700°C, which leads to gradual wear and tear. At present, they are regarded as consumables: once damaged, they are discarded, although only the end exposed to the heat is degraded. Soudobeam wants to change this by introducing a system for returning, repairing and reusing lances. This would significantly reduce metal waste and limit the need for new resources. To achieve this, the company has been working on two complementary areas. The first is to make the lances modular, so that only the worn parts are replaced, allowing the product to be reused. The second is to set up a business model in which reconditioned lances are made available to customers, in return for a fee based on their actual use.

Modular design to extend service life The first step in this transformation was eco-design: creating a modular lance that is easy to dismantle and repair, and practical to recondition. Only worn parts are replaced, saving 65% in raw materials and 75% in working hours. The new design also makes it easier to sort materials. Scrap copper can easily be recycled for use in the production of new raw materials. All in all, the lance is not only more durable, but also more efficient, because it is regularly overhauled. Moving from sales to service In addition to the product, Soudobeam is also transforming its business model. Rather than selling its lances as disposable items, the company wants to offer a "Product as a Service" model. In practical terms, the customer no longer pays to own the lances, but to use them. Soudobeam retains ownership of the nozzles, maintains them, repairs them and replaces them if necessary. This economy of functionality model values efficiency, lifespan and quality of use rather than volume sales. This means that customers always have high-performance equipment, without having to tie up stock or manage maintenance themselves. This paradigm shift does, however, present challenges. It is essential to model the marketing of the service from a financial point of view in order to guarantee its profitability. Soudobeam needs to carry out tests with its customers to adjust the offer and find the optimum balance between the benefits for the company and the added value for the customer.

A winning model for the industry For customers, this model provides a complete service: they always have a high-performance lance, without having to worry about wear and tear or replacement. For Soudobeam, it's an opportunity to position itself as a long-term partner, build customer loyalty and open up new markets. In Europe, steel production using electric arc furnaces (EAF) is growing because it emits less CO2 than traditional processes. The potential for deployment is therefore significant. With this circular strategy, Soudobeam is anticipating tomorrow's needs and strengthening its position on the European market.