The new facility, which will be capable of annually producing 2.5 million metric tons, will consist of two electric arc furnaces (EAFs), advanced secondary metallurgy, a direct strip rolling mill to produce SSAB’s specialty products, and a cold rolling complex to serve the mobility segment with a broader offering of premium products. The new mill will be supplied with a mix of fossil-fuel-free sponge iron from the HYBRIT demonstration plant in Gällivare and recycled scrap.

“The transformation of Luleå is a major step on our journey to fossil-free steel production. We will remove 7% of Sweden’s carbon dioxide emissions, strengthen our competitive position, and safeguard jobs with the most cost-effective and sustainable strip production in Europe,” said SSAB president and chief executive officer Martin Lindqvist.

SSAB said that by investing in new technologies, it is avoiding EUR2 billion in investment otherwise required for existing operations over the next 10 years. The plan is to fund the investment with its own cash flows and within SSAB’s financial targets, it said. 

Start-up of the new mill is planned at the end of 2028 with full capacity one year later. Environmental permits are expected at the end of 2024.