“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,” said SSAB president and chief executive officer Johnny Sjöström. 

“It will strengthen not only our competitiveness but the competitiveness of Sweden as a whole, and it means that we can continue to deliver the steel our customers demand,” he added. 

SSAB is converting the Luleå plant from a coal- and blast furnace-based production system to an electric arc furnace-based mini-mill. The conversion is expected to reduce Sweden’s countrywide CO2 emissions by 7%.

The new facility is to enter service at the end of 2028, reaching full capacity in 2029. 

“It is important for Norrbotten (region) 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,” said Elisabeth Backteman, director general at the Swedish Agency for Economic and Regional Growth.