SSAB is awarded financing from EU and Swedish Agency for Economic and Regional Growth
SSAB is granted SEK 1.45 billion in the framework of the Just Transition Fund, an EU fund that in Sweden includes support to the transition of the steel industry in Norrbotten. The funding will contribute to the transformation to fossil-free steel production of SSAB’s operations in Luleå, a technology shift that will significantly reduce Sweden’s carbon dioxide emissions.
Illustration of SSAB's new steel plant in Luleå.
”The funding from the EU and the Swedish Agency for Economic and Regional Growth enables us to maintain a high pace in the transition to fossil-free steel production. It is a clear signal from both the EU and Sweden about the importance of our transformation. It will strengthen not only our competitiveness but the competitiveness of Sweden as a whole and means that we can continue to deliver the steel our customers demand,” says Johnny Sjöström, President and CEO at SSAB.
SSAB plans to decommission the current coal and blast furnace-based production system in Luleå in favor of a state-of-the-art fossil-free mini-mill with electric arc furnaces and rolling complexes. This will reduce Sweden’s CO2 emissions by 7% in addition to the 3% from the conversion of SSAB’s steel plant in Oxelösund. Startup of the new mill in Luleå is planned at the end of 2028 with full capacity in 2029, while startup of the new electric arc furnace in Oxelösund is expected toward the end of 2026. The investments are mainly funded with SSAB’s own cash flow.
The Just Transition Fund is an EU fund that focuses on industries and regions with high carbon dioxide emissions. The fund will help reduce emissions and tackle the challenges created by the transition. In Sweden’s national program for the Just Transition Fund, the eligible sectors are the steel, metal and cement industries. The steel industry in Norrbotten was pinpointed as one of three industries that could be awarded the funds.
On October 21, 2024, the European Commission announced that it had approved a Swedish measure to support SSAB through the Just Transition Fund. On December 4, 2024, the Swedish Agency for Economic and Regional Growth, which administers the fund in Sweden, announced that SSAB is granted SEK 1.45 billion in EU funding and national co-financing.
“It is important for Norrbotten and for Sweden that the steel industry now accelerates its climate transition while maintaining competitiveness. It is also important for reaching Sweden's climate targets,” says Elisabeth Backteman, Director General at the Swedish Agency for Economic and Regional Growth.
SSAB has previously been granted nearly SEK 38.6 million from the same fund for SSAB Academy, a pilot program for employee competence development in Luleå.
Read more about SSAB’s transformation in Luleå: https://www.ssab.com/en/news/2024/04/ssab-continues-the-transformation-with-a-fossilfree-minimill-in-lule-sweden
Read more about the Just Transition Fund: https://tillvaxtverket.se/tillvaxtverket/inenglish/eufunds.3705.html
For further information, please contact:
Gunilla Hjalmarson, Head of External Communication and Press, gunilla.hjalmarson@ssab.com, tel: +46 76 117 91 85
Anna Molin, Press Officer, anna.molin@ssab.com, tel: +46 76 110 46 76
SSAB is a Nordic and US-based steel company that builds a stronger, lighter and more sustainable world through value added steel products and services. Working with our partners, SSAB has developed SSAB Fossil-free™ steel and plans to reinvent the value chain from the mine to the end customer, largely eliminating carbon dioxide emissions from our own operations. SSAB Zero™, a largely carbon emission-free steel based on recycled steel, further strengthens SSAB’s leadership position and our comprehensive, sustainable offering independent of the raw material. SSAB has employees in over 50 countries and production facilities in Sweden, Finland and the US. SSAB is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki. Join us on our journey! www.ssab.com, Facebook, Instagram, LinkedIn, X and YouTube.
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