Peab and LKAB strengthen strategic partnership regarding industrial investments in the north
Peab and LKAB are strengthening their strategic partnership in a number of planned major industrial investments linked to the green transition in northern Sweden. Among other things, the companies have signed a letter of intent concerning construction of the hydrogen plant that LKAB is planning in Gällivare.
Some of the largest industrial investments in Swedish history are currently taking place in northern Sweden.
"As a strategic partner to LKAB we’re proud to play an important role in this development. Peab has extensive experience of large industrial projects in the region where we have built everything from factories to logistics facilities and major ports. This means we’re used to complex projects and are well aware of the challenges, which is why we always prioritize being organized and keeping order, especially in matters related to safety and security. By working together early on we create the best foundation for an efficient execution, a quality product and a satisfied customer," says Jesper Göransson, President and CEO of Peab.
"We’re currently planning for a gradual expansion and transition of our operations to strengthen our competitiveness and reduce carbon emissions in the iron and steel industry over a long period of major investments in the north, starting in Gällivare. With our growing mineral resources of high quality ore, Sweden's almost fossil free electricity and the technology we’ve developed within the HYBRIT collaboration, we are a driving force for the creation of fossil free industrial value chains that will heighten LKAB’s and Swedish industry's competitive edge. It’s vital for us to have partners with expertise, experience and capacity for the kind of challenges we’re facing," says Jan Moström, President and CEO of LKAB.
The strengthened collaboration includes a letter of intent between the parties concerning a construction contract for LKAB's planned hydrogen plant, including infrastructure and foundation work. The letter of intent also includes a logistics facility at the Port of Luleå. Timetables and project costs have not yet been determined. The projects are therefore not registered in Peab's orders received.
As part of this intensified collaboration the companies will jointly plan for successfully executing the project, not only regarding costs and time but by taking a tangible responsibility for the environment and people.
"We're taking the next step towards realizing our plans through a long-term partnership with Peab. By working closely together from the start Peab can contribute with expertise throughout the planning process as well as build structural capital, work with knowledge exchanges among projects and take overall responsibility for these major construction projects. It’s also important for us to have a partner that can manage safe and functional projects and shares our values," says Jan Moström, President and CEO of LKAB.
Peab has been established in Norrland since 1991 and taken the lead in developing the construction industry in the north with a number of large and exciting industrial projects - most recently the SCA factory in Obbola, Sundsvall Logistics Park and the Port of Skellefteå.
"Looking back over the years many others chose to shut down their operations in the north when times going got tough but we always chose to stay. I'm very happy about that now. Thanks to the fact that we’ve stood our ground we continue to have competent, local employees in our projects, which guarantees solid expertise and strong commitment to the region," says Jesper Göransson, President and CEO of Peab.
For further information, please contact:
Peab’s press office, +46 10 456 86 00 or pressjour@peab.se
Peab is the Nordic Community Builder with 14,000 employees and net sales of SEK 57 billion. With a local presence and focus on our own resources we develop, do the groundwork and build everyday life where it’s lived. Company headquarters are in Förslöv on Bjäre Peninsula in southern Sweden. The Peab share is listed on Nasdaq Stockholm.
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