Steel manufacturer SSAB has been given the green light by the Land and Environment Court to build its new electrical steel plant in Luleå. This is stated in a press release.
The new plant is intended to replace the company's existing blast furnace when it comes into operation in 2028. The investment is SEK 52 billion. The large amount has been questioned by the market and has seen the share price fall 40% since the announcement came in April.
From a sustainability point of view, the new steel plant will be a big step forward for the company. This is because carbon dioxide emissions will almost disappear completely in connection with the new plant. This can be compared with the fact that SSAB is currently the largest emitter of carbon dioxide in Sweden.
"The permit enables a technology shift that has major positive environmental and climate effects, meets the high demand for our unique steel and strengthens our future competitiveness," the company writes in a press release.
- "This is a great day for us at SSAB and for the transition to fossil-free steel production in Sweden. Now we can move forward with an investment that will lead to reduced climate impact of national importance. At the same time, we keep the jobs in Luleå, create a more flexible and cost-efficient production and strengthen our and our customers' competitiveness with a broader range of unique premium products," says Johnny Sjöström, President and CEO of SSAB.
The plan is to phase out the current blast furnace-based production system when the integrated steel mill with electric arc furnaces, rolling and further processing is fully operational.
The transition in Luleå will bring significant emission reductions to air and water, increase resource efficiency and remove 2.8 million tons of annual CO2 emissions. In total, SSAB's conversion will enable a 10% reduction in Sweden's carbon dioxide emissions, of which 7% will come from Luleå and 3% from the conversion in Oxelösund.
Preparations for construction are now continuing, including detailed design and the building permit process.
SSAB AB specializes in manufacturing and distribution of specialty steel. Net sales break down by activity as follows:
- steel processing (81.1%): processing of steel and aluminum sheets for industry or construction (the group is the leading manufacturer of steel sheets in Scandinavia), production of laminated steel, metal plate and hardened steel used mainly in equipment for the construction and mining industries (world's leading manufacturer) and manufacture of safety components for the automotive industry;
- trading of steel products (11.4%): metals, building products, tools, machinery, etc. Tibnor is Sweden's leading steel trading company;
- sale of construction materials (4.8%; Ruukki Construction);
- other (2.7%).
Net sales are distributed geographically as follows: Sweden (13.7%), Finland (7.9%), Europe (37.2%), the United States (29%) and other (12.2%).
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