The investment of SEK 45 billion (equivalent to more than BRL 25 billion) will allow for a reduction of around 10% in Sweden's total carbon dioxide emissions and around 7% in Finland.
SSAB, Sweden's leading high-strength steelmaker, is leading the green transition in the steel industry through the unique HYBRIT initiative together with its partners. A transformation plan was drawn up in each production unit to eliminate all emissions from the steel plant over the next ten years, around 2030, a time considerably faster than the previous target, which was until 2045 (15 years earlier than previously announced). ). This will mean an emission reduction of more than 8 million tons of carbon dioxide per year compared to current levels.
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The SSAB Board took a decision to fundamentally transform Nordic strip production and accelerate the company's green transition. The decision was taken in a context of strong growth in demand for steel free of fossil fuels.
The plan is to replace the existing system with new mini-mill technology, which will result in a broader product range and better cost position. The goal is to largely eliminate carbon dioxide emissions around 2030, 15 years earlier than previously announced. However, to achieve this goal, the necessary infrastructure, particularly access to fossil fuel-free electricity, must be in place in time.
“Our customers are demanding fossil-free products from SSAB. We can solve the technical challenges and we have a strong financial position. If we manage to resolve the issue of energy supply and environmental licenses together with society, we will be able to make the transition 15 years earlier than the previously communicated plan. We can fund the plan through our own cash flow, resulting in a broader product program and better cost,” says Martin Lindqvist, President and CEO of SSAB.
The investment will allow for a reduction of around 10% in total carbon dioxide emissions in Sweden and around 7% in Finland.
New production system should total approximately SEK 45 billion (equivalent to over USD 4 billion and R$ 25 billion) during 2022-2030
The intention is to transform the Nordic production system of SSAB based on current business strategy. The new system will mean increased capacity for premium products, a better cost position and fossil fuel free production. Under the new plan, the Luleå and Raahe production sites will be transformed into cost-effective mini-mills with electric arc furnaces and rolling mills. The Borlänge and Hämeenlinna units will be developed according to the new production processes.
Strategic investments in the new strip production system are expected to total approximately SEK 45 billion (equivalent to over USD 4 billion and R$ 25 billion) during 2022-2030. At the same time, this will eliminate the need to invest in existing systems with blast furnaces, steel mills and rolling mills.
The investment will result in a broader offering of premium SSAB products such as High Strength Steel (AHSS) and Quenched and Tempered Steel (Q&T). An expanded dimensional program with improved tolerances will increase the offering for the automotive industry, among others.
