The steel company SSAB has decided to go ahead with the construction of a state-of-the-art fossil-free steel mill in Luleå. The investment is estimated at EUR 4.5 billion, equivalent to approximately SEK 52.2 billion, according to a press release.

The new steel mill will have an annual capacity of 2.5 million tons and consist of two electric arc furnaces, advanced ladle metallurgy with an integrated rolling mill for the production of SSAB's special steel. As raw material, the steel mill will use a mixture of fossil-free sponge iron from Hybrite's demonstration plant in Gällivare and recycled steel scrap.

"The transition in Luleå is a milestone on our journey to fossil-free steel production. We will remove 7% of Sweden's carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-efficient and sustainable sheet metal production in Europe," says CEO Martin Lindqvist.

SSAB predicts that the investment will also lead to an improved ebitda result of over SEK 5 billion per year, given current forecasts for raw material costs.

The steel mill is expected to be commissioned towards the end of 2028, reaching full capacity one year later.