"Supply Chains Under Pressure" – Headlines like this have unsettled many companies in recent years. Raw material shortages, geopolitical tensions, rising energy prices: all of this has shown how vulnerable global networks can be. Customers of CERATIZIT benefit from the company's unique and future-proof supply chain.
For over 100 years, CERATIZIT has been developing and producing sophisticated cutting and wear protection solutions made from hard materials, primarily tungsten carbide. Since tungsten is an element with exceptionally high density and the highest melting point of all metals, it is an indispensable material for numerous applications in the high-tech industry.
As part of the Plansee Group, CERATIZIT has a fully integrated value chain – from tungsten powder to the finished tool. This allows the company to control all critical steps and not be dependent on short-term market fluctuations. An important factor is a material supply independent of China and a consistent circular economy approach with a recycling rate of 91% for tungsten at CERATIZIT in the fiscal year 2024/25.
This not only reduces the company's dependence on primary raw materials but also its CO2 footprint.
Important pillars for supply security
The stability of CERATIZIT's value chain is based on a comprehensive approach. Recycling and buyback play a central role, as tungsten can be recycled infinitely when the right infrastructure is in place. CERATIZIT systematically collects tungsten scrap and processes it with advanced recycling technologies at Global Tungsten & Powders (GTP) – a company of the CERATIZIT Group – in the USA and Finland.
Processing tungsten scrap at GTP (USA) also produces a cobalt-containing sludge, which is further processed and used in GTP's tungsten carbide powder production. This closed loop makes CERATIZIT independent of external suppliers, supports the company's conflict-free* status, and contributes to achieving its sustainability goals. Stadler Raw Materials, Europe's largest tungsten scrap collector and part of the CERATIZIT Group, is also an important component of this process.
In addition to recycling, long-term purchase agreements in mining projects and strategic investments secure access to some of the largest tungsten deposits outside China: The Plansee Group is the largest single shareholder of Almonty, operator of the Sangdong mine in South Korea. All concentrates from the mine are subsequently processed into tungsten powder at GTP. These joint efforts have established CERATIZIT as a leading Western tungsten producer with a particularly high proportion of recycled material. "Our integrated and recycling-oriented supply chain offers customers long-term security in an unpredictable world. By combining strategic investments with one of the highest tungsten recycling rates in the industry, we ensure reliable access to critical raw materials that are conflict-free and not dependent on supplies from China, while also reducing our environmental impact." – Andreas Lackner, member of the management board of the CERATIZIT Group.
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