SSAB plans to bring forward the green transition

Luleå SSAB is accelerating the transition by 15 years and aims for fossil-free production as early as 2030. To make this possible, an electric arc furnace and a new rolling mill are being built in Luleå.

SSAB's Board of Directors has decided that SSAB will invest a total of SEK 45 billion during the period 2022-2030.
This means that all of SSAB's production sites will be converted to fossil-free operation by 2030. In addition to the already planned electric arc furnace in Oxelösund, electric arc furnaces and rolling mills will be built in Luleå and Brahestad in Finland. The plan is to replace the existing system with new mini-mill technology, which will result in a broader product program and improved cost position. Production in Borlänge and Hämeenlinna will be further developed for the new production processes.

"Our customers are demanding fossil-free products from SSAB. We can solve the technical challenges and we have a strong financial position. If we can resolve the question of power supply and environmental permits together with society, then we can make the transition 15 years earlier than the plan communicated previously. We can finance the plan through our own cash flow and resulting in a broader product program and improved cost position,” says Martin Lindqvist, President and CEO of SSAB.

Previously, the goal was to have completely fossil-free production by 2045. But the sharp increase in demand for fossil-free steel is now prompting SSAB to speed up the transition.

“We now have a unique opportunity in Sweden and Finland. An accelerated fast transformation of the industry will allow us to create new fossil-free value chains and secure jobs in Nordic industry for the future. We will increase SSAB’s earnings, while rapidly reducing carbon dioxide emissions and making a significant contribution to the climate and the transition of society,” says Martin Lindqvist.

The plan means that virtually all of SSAB's emissions will be eliminated by the beginning of the next decade, which means a reduction of more than 8 million tonnes of carbon dioxide per year compared to today. The initiative will reduce Sweden's total carbon dioxide emissions by around 10% and Finland's by 7%.

However, SSAB stresses that a prerequisite for the initiative is the rapid expansion of the infrastructure, especially the availability of fossil-free electricity.