Transforming from a position of strength
SSAB’s Board of Directors took the decision to invest SEK 6.2 billion in an electric arc furnace (EAF) in Oxelösund in June 2023. This was the starting point of the transformation of the Nordic production system. After a policy decision in 2022, two mini-mills are planned in the Nordics, one in Luleå in Sweden and one in Raahe in Finland. With regard to Luleå, the decision to invest was taken in April 2024. The third step in the transformation is the planned transformation of Raahe. The timing of the Raahe project will depend on SSAB’s financing and implementation capacity and the lessons learned from the Luleå project. SSAB Americas plays an important role in the transformation, providing unique knowledge and experience from EAF steelmaking. SSAB Americas has been spearheading SSAB Zero®, introduced in the market in 2023.
Green and sustainability-linked finance
In 2024, SSAB launched a new combined Green and Sustainability-Linked Finance Framework that provides us with an opportunity to issue both green and sustainability-linked financing instruments, as well as a combination of the two.
This means we are taking a pivotal step in our transformation toward fossil-free steelmaking and reduced carbon dioxide emissions. The framework contains ambitious, science-based emission reduction targets and sets clear guidelines for our green investments.
Shipments of decarbonized steels
The production of fossil-free steel has already started as a proof of concept and test batches have been shipped to strategic partners since 2022. In 2023, our new SSAB Zero™ steel produced in Iowa, USA, was introduced. When transforming our Nordic sites, we will benefit from our experience from the USA, where we use EAFs in steel production at our sites in Montpelier and Mobile. This includes the most advanced quenched and tempered (Q&T) grades.
Key performance improvements
The transformation will increase the capacity for premium products, improve our cost position, shorten lead times and enable fossil-free steelmaking. The plan is to transform the sites in Luleå and Raahe into new cost-effective mini-mills, with electric arc furnaces, integrated rolling and further processing. The sites in Borlänge and Hämeenlinna will be further developed in line with the new production processes.
Sites well suited for a new future
The present production sites have great advantages for the future. The sites are large, which means that it will be possible to run old and new systems in parallel during the transition period. Important logistics capabilities exist from the start, with direct access to harbors, railway and road transports as well as raw material handling capabilities.
Luleå
- • Blast furnace-based steel production
- • Crude steel production capacity: 2.3 million tonnes
- • Employees: 1,200
- • Established: 1941
Oxelösund
- • Blast furnace-based steel production, heavy plate
- • Crude steel production capacity: 1.5 million tonnes
- • Employees: 2,400
- • Established: 1913
Borlänge
- • Strip products
- • Employees: 1,800
- • Established: 1878
Raahe
- • Blast furnace-based steel production, heavy plate and strip products
- • Crude steel production capacity: 2.6 million tonnes
- • Employees: 2,600
- • Established: 1960
Hämeenlinna
- • Strip and tubular products
- • Employees: 1,000
- • Established: 1972
Montpelier and Mobile
- • Scrap based electric arc furnace steel production, heavy plate
- • Employees: 650 in Mobile, Alabama and 450 in Montpelier, Iowa
- • Annual steel production capacity: approx 2.5 million tonnes (1.29 respectively)
- • Both SSAB Alabama and SSAB Iowa were constructed and opened by IPSCO, acquired by SSAB in 2007. Alabama opened in 2001 and Iowa opened in 1997.
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