AMSTERDAM, Oct 25 (Reuters) – Dutch arm Tata Steel (TISC.NS) plans to supply Ford (FN) factories in Europe with “green” steel after 2030, under a preliminary agreement reached by the two companies on Tuesday.

Tata plans to start producing green steel – or steel made without using fossil fuels – in 2030 at its plant in Ijmuiden, Netherlands.

Ford “want to have large quantities of green steel, and … we will take steps so that we can deliver it,” Hans van den Berg, chief executive of Tata Steel Nederland, said in an interview.

The memorandum of understanding signed between Tata and Ford Europe does not oblige Ford to buy a certain amount of steel at a certain price, he said.

Separately, Ford said it had signed supply MOUs with Tata, ThyssenKrupp (TKAG.DE) and Salzgitter (SZGG.DE) to supply “low-carbon” steel for use in the manufacture of a new electric crossover model it plans to start production in Cologne next year. year.

Ford said in a statement that the agreement would help it meet its target of zero emissions at its European facilities, logistics and suppliers by 2035.

“Improvement in our supply chain is key, and by using carbon neutral steel we will take major steps to lower our vehicles’ CO2 footprint,” said Ford Europe purchasing director Sue Slaughter in a statement.

Reporting by Toby Sterling; Edited by Susan Fenton

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