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SSAB With New Billion Euro Investment in Fossil-Free Steel in Northern Sweden
Global steel company SSAB’s Board of Directors has decided to build a new fossil-free steel mill in Luleå, Northern Sweden. The investment is estimated to be a whopping EUR 4.5 billion.
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"The transformation of Luleå is a major step on our journey to fossil-free steel production. We will remove 7 percent of Sweden's carbon dioxide emissions, strengthen our competitive position, and safeguard jobs with the most cost-effective and sustainable strip production in Europe."
SSAB's President and CEO Martin Lindqvist made the statement in a press release on Tuesday. The company informs that SSAB has decided to move forward with the next step in its transition by building a state-of-the-art fossil-free steel mill in Luleå, Northern Sweden.
Billion-euro investment
SSAB will close the current blast furnace-based production system when the new steel mill is completed. This will reduce Sweden's CO2 emissions with 7 percent in addition to the 3 percent from the Oxelösund mill conversion, writes SSAB.
The total mini-mill investment, including contingencies, is estimated to be EUR 4.5 billion (about SEK 52 billion). The company plans to fund the investment with its own cash flows and within SSAB's financial targets.
The new Luleå mill will have a capacity of 2.5 mton/year and will be supplied with a mix of fossil-free sponge iron from the Hybrit plant in Gällivare and recycled scrap.
The startup of the new mill is planned for the end of 2028, with a total capacity one year later.
“Together with our partner LKAB, we are committing to eliminating CO2 emissions from our value chain and establishing the new benchmark technology for a fossil-free future. In the process, we are also safeguarding Nordic industrial competitiveness for decades to come and supporting the thousands of customers that rely on quality steel from our value chain,” says Martin Lindqvist.
