It is about the transition to sustainable production that will reduce the Group's carbon footprint and at the same time lead to higher profitability and better ability to handle economic fluctuations. As a step in this, a new steel is now being launched that causes no carbon dioxide emissions whatsoever.
“SSAB is in a position of strength as we have built a more resilient and profitable company. We are now stepping up our ambitions. Today, we are launching a brand new steel, SSAB Zero, with 0.0 kg of CO2e emissions – the first commercial product in the world of its kind. We are updating our financial targets and can now build further to reach industry-leading profitability. The focus in the coming years is on our investment program, which will result in an improved cost position and the possibility to drive our carbon dioxide emissions down to almost zero”, says Martin Lindqvist, SSAB’s President and CEO.
SSAB is stepping up the pace to implement the transition to fossil-free steel production already around 2030. This includes the construction of two new steel plants, so-called mini-mills, in Luleå in Sweden and Raahe in Finland. Together with investments in Oxelösund in Sweden, this means investments totaling SEK 50 billion.
SSAB can already produce fossil-free steel in an electric arc furnace using recycled steel as raw material. The Hybrit project, run together with mining company LKAB and state owned energy company Vattenfall, will in future replace blast furnaces with a fossil-free process in which iron ore pellets are directly reduced to sponge iron using hydrogen gas and electricity. A demonstration plant for this process is being built in Gällivare.
The new financial targets presented by the company include:
Net debt/equity ratio between -20% and 20% (net debt/equity) (previously: Net debt/equity ratio should normally not exceed 35%).
Dividend - Distribution of 40% of profit after tax (previously: 30-50% of profit after tax).
Before deciding on annual dividend proposals and adjustments to the capital structure, management and the Board will evaluate the capital needs for the coming year, based on the market outlook, investment plans and other considerations.
Lennart Håkansson
editor@northswedenbusiness.com
