(update with paragraph on payments, share price movement)
The steel company SSAB has been awarded a total of SEK 1.45 billion in support from the Swedish Agency for Economic and Regional Growth and the EU to convert to fossil-free steel production.
The money is distributed within the framework of the Just Transition Fund, which is an EU fund.
SSAB's CEO said in a statement that the contribution strengthens both the company and Sweden's competitiveness.
"The funding from the EU and the Swedish Agency for Economic and Regional Growth enables us to continue to maintain a high pace in the transition to fossil-free steel production. It is also a clear signal from both the EU and Sweden about the importance of our transition," says Johnny Sjöström.
Minister for Energy and Industry Ebba Busch (KD) agrees.
"The transition to fossil-free steel is an important part of strengthening industrial competitiveness and creating new jobs. Swedish companies are leading the way and the state has an important role to play in supporting and removing obstacles," says Busch.
According to Romina Pourmokthari, Minister for Climate and the Environment, it is "crucial" that SSAB makes the transition "to significantly reduce Sweden's total emissions in one go".
SSAB has previously been awarded almost SEK 38.6 million from the same fund for SSAB Academy.
Today's transition support is the single largest support within the Swedish program. The EU and the Swedish Agency for Economic and Regional Growth each provide half of the funding.
In a comment to Finwire, the Swedish Agency for Economic and Regional Growth says that the support will be paid out in installments.
SSAB's share has so far risen around 1.8 percent on the Stockholm Stock Exchange.
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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