Mercedes-Benz and Hydro Join Forces in the Brazilian Amazon to Foster Long-Term Development Along Their Aluminum Supply Chain

Mercedes-Benz and Hydro join forces in the Brazilian Amazon to foster long-term development along their aluminum supply chain (Graphic: Business Wire)
Mercedes-Benz and Hydro join forces in the Brazilian Amazon to foster long-term development along their aluminum supply chain (Graphic: Business Wire)

In This Article:

  • Corridor Program: Mercedes-Benz and Hydro extend their strategic partnership to support the long-term development of communities along the aluminum supply chain in the state of Pará, Brazil.

  • Just Transition: Lighthouse project to create positive impacts for both people and nature throughout aluminum supply chain in Brazil.

  • Joint efforts: Mercedes-Benz, Hydro and local NGOs form a steering committee to enhance community involvement in mining area.

  • Decarbonization: In 2022, Hydro and Mercedes-Benz agreed to work together on a technology roadmap for producing low-carbon aluminum.

NEW YORK, September 24, 2024--(BUSINESS WIRE)--At the New York Climate Week, Mercedes-Benz and Hydro elevate their strategic partnership by enhancing the vertical integration of their aluminum supply chain and launching the long-term Corridor Program for a sustained development in the Amazon. Following their joint decarbonization roadmap Mercedes-Benz and Hydro signed a Memorandum of Understanding (MoU) to collaborate with local NGOs and partners in the state of Pará, Brazil. Their goals include promoting human rights, generating income for local communities, fostering biodiversity and low-carbon value chains in the Brazilian Amazon.

"In managing our supply chains responsibly, we concentrate on three goals: The decarbonization of our products, the promotion of human rights and the focus on more sustainability over the vehicles' entire life cycle. The joint Corridor Program manages to connect all three. In close cooperation with our partners, it has the potential to push the vertical integration of our supply chain to a new level."
Dr. Gunnar Güthenke, Head of Procurement and Supplier Quality Mercedes-Benz Cars

The Corridor coalition aims to create a positive impact for the communities along the 244-kilometer bauxite slurry pipeline operated by Hydro, which runs through seven municipalities in the state of Pará, Brazil – from the Paragominas bauxite mine to the Alunorte alumina refinery in Barcarena. The goal is to engage local communities along the aluminum supply chain and empower them to improve their economic, ecological, and social well-being. Mercedes-Benz is part of the program's governance, helping to establish necessary structures and build knowledge for sustainable risk management in raw material supply chains.

The Corridor initiative reflects the company’s commitment to a "Just Transition": Prioritizing people and human rights along with responsible policies and community engagement as the decarbonization of the Mercedes-Benz Group’s business model leads to significant changes in technology, products, and workforce. The program has the potential to become a blueprint for the involvement of local communities and getting vertically engaged in vulnerable mining areas.