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SSAB plans to invest EUR 4.5 billion in a fossil-free steel mill in Luleå, Sweden

SSAB’s Board of Directors have decided to move forward with the next phase in SSABs transition, constructing a modern fossil-free mini-mill in Luleå, Sweden. Once finished, SSAB will shut down…

The SSAB Board of Directors has approved the construction of a state-of-the-art fossil-free mini-mill in Luleå, Sweden. This new mill will replace the current blast furnace-based production system and reduce Sweden’s CO2 emissions by 7%, in addition to the 3% from the Oxelösund mill conversion.

The new Luleå mill will be able to produce 2.5 mton/year and will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill for SSAB's specialty products, and a cold rolling complex for premium products for the mobility segment. Fossil free sponge iron from the Hybrit demonstration plant in Gällivare and recycled scrap will be used in the new mill.

The transformation of Luleå is a major step towards fossil-free steel production, reducing Sweden’s carbon dioxide emissions by 7%. It aims to strengthen SSAB's competitive position and ensure cost-effective and sustainable strip production in Europe.SSAB’s President and CEO, Martin Lindqvist, stated, “” says SSAB’s President and CEO” Martin Lindqvist.

The total investment for the mini-mill is estimated to be EUR 4.5 billion including contingencies. SSAB aims to fund the investment with its own cash flows and within its financial targets.

The investment is expected to create significant value. It is estimated that the yearly EBITDA improvement will be more than SEK 5 billion/year, with a better cost position, lower fixed costs, higher efficiency, shorter lead times, and eliminated CO2 costs. The mill design includes production increase of 0.5 mton/year and improved mix with 1 mton/year increase of special and premium steel grades.

The new mill is scheduled to start operations at the end of 2028 with full capacity one year later. Environmental permits are expected at the end of 2024. This investment is an important step in SSAB’s strategy to be a leader in emission-free special and premium steels. SSAB has formed 55 partnerships with leading customers for its fossil-free and zero steels.

SSAB made a decision in 2023 to transform the steel mill in Oxelösund to fossil-free production, and the project is progressing according to plan. The decision to proceed with Luleå as a second step is based on financial considerations, as well as the better condition and more advanced equipment at the Raahe mill in Finland. A transformation for Raahe, Finland, is planned as a third step, depending on SSAB's financing and execution capacity, as well as the learnings from the Luleå project.

Together with partner LKAB, SSAB is committed to eliminating CO2 emissions from its value chain and establishing new benchmark technology for a fossil-free future. This commitment aims to safeguard Nordic industrial competitiveness and support the thousands of customers relying on quality steel from its value chain. emissions from our value chain and establish 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.

SSAB is inviting you to a phone meeting at 10.30am CEST on Tuesday, April 2, 2024. SSAB’s CEO Martin Lindqvist will be involved in the meeting which will be conducted in English.

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