Transforming from a position of strength

In April 2024, SSAB’s Board of Directors took the decision to proceed with the building of a state-of-the-art fossil-free mini-mill. When the mill is completed, SSAB will close the current blast furnace-based production system and reduce Sweden’s CO₂ emissions by 7%.

The plan is for the new mini-mill in Luleå to start up in late 2028 and to be operating at full capacity a year later. The changes will lead to a reduction in carbon dioxide emissions of approximately 2.8 million tonnes annually, which corresponds to an emission reduction of approximately 90% compared to today’s operations. SSAB also works actively with indirect carbon dioxide emissions. Our combined approach aims to create a fossil-free value chain together with our partners and customers. The transformation will mean increased flexibility, shorter lead-times and that carbon dioxide emissions from SSAB's own operations will be largely eliminated.

Emissions of pollutants to water will be significantly reduced as a result of blast furnaces, coking plant and existing steel plant being decommissioned. The emissions of pollutants into the air from the existing operations will cease completely, which means that dust emissions from these facilities and from the associated supply of coal and coke, will disappear. The construction of a brand new facility enables the application of modern purification technology to minimize the emissions that will arise from the future business.

The existing blast furnace based production will be in operation during the period when the new facility is built, as well as during a transition period when the new production set-up is gradually put into operation in parallel with existing production being gradually phased out. The mini-mill will be built within SSAB’s current area of operation on Svartön.

The main raw materials in the future production system will be fossil-free sponge iron and recycled steel scrap, both from our own operations and from external sources. The scrap is classified according to national and international classification systems, so that the alloying elements of the scrap are used to such a high degree as possible.

The new steel production also means that SSAB is transitioning to more resource-efficient manufacturing by bringing different processes together in a cohesive flow. Production time from melting raw materials into finished rolled and processed products, will be about three hours, compared to today’s production system, which includes further processing in Borlänge, where the production time is a few days.

The new mini-mill in Luleå will have a capacity of around 2.5 million tonnes a year. The facility will comprise two electric arc furnaces, advanced secondary metallurgy and an integrated strip rolling mill, which will enable the production of SSAB’s special products. Going forward, the investment will also enable the production of cold-rolled and galvanized products and so broader premium ranges for the automotive industry.

An approximate location of the future business, where virtually all functions are located underneath same roof. The entire facility for future operations is approximately 1,500 meters long.

Within the framework of the transformation, plans are made for an energy-efficient facility that reduces the total energy use by approximately 70% compared to today’s operations. The business starts from an annual consumption of energy of about 11.5 TWh to about 3.5 TWh and from an energy mix based on coal, coke and electricity to mainly use electricity.

Residual energy from the process will occur, of both high and low value. There are ongoing investigations into the extent to which these residual energies can be recycled in a future district heating system or to other types of energy recovery. SSAB has entered into an overall declaration of intent with Luleå Municipality and municipal companies on common overall solutions for a fossil-free industrial transformation.

In June 2023, the Board took the decision to invest SEK 6.2 billion in the conversion of the steelwork in Oxelösund, Sweden. The investment comprises a new electric arc furnace and raw material handling in Oxelösund. In addition, there will be investments in the future power line and restoration costs. The decision is the historic starting point for the green conversion of SSAB’s Nordic strip production system. It will allow us to reduce Sweden’s CO₂ emissions by 3% when completed. The aim is to start production of steel without carbon emissions, based on recycled steel and sponge iron, in around 2026.

The transformation of Oxelösund includes closing down the coking plant and two blast furnaces, a new infrastructure for biofuels and expansion of scrap handling and efficient material logistics. The rolling mill and Q&T lines will remain.

The conversion in Oxelösund is progressing. In 2023, the Swedish Energy Markets Inspectorate gave the green light for a new 130kV power line from Hedenlunda in Flen to SSAB in Oxelösund and construction on the new EAF and raw material handling began.

SSAB Borlänge plans to invest in several new production processes in the next few years to be ready for the transition to the new Nordic production system. Preparations for the transformation to fossil-free steel production is ongoing and will affect the production flow at receiving systems for coils in Borlänge. They will also affect how the products are produced, packaged and transported. The changes planned in Borlänge will be ready by 2028 to support the overall transformation. The goal of the conversion is that SSAB Borlänge in 2030 is well equipped for the needs of the future. Today, SSAB Borlänge has unique processes and products, and it is important to continue to deliver good quality at a high level throughout the transition period.

SSAB Borlänge will prepare to handle coils from mini-mills and distribute coil instead of slabs. Fossil fuels that are used today will be gradually replaced by fossil-free energy sources. We will need to ensure the availability of fossil-free energy sources, such as electricity and biogas, in the future. As part of the transformation, the hot strip mill in Borlänge will be discontinued, though it will be operational until at least 2030.

At the Raahe site, SSAB has strived to minimize the environmental impact and we have reduced our emissions and improved our material efficiency step-by-step. The site is Finland’s largest single source of carbon dioxide emissions today. By changing our production technology, we can reduce emissions by 90%. This means a new future for steel and the biggest change in steelmaking in centuries. It corresponds to a reduction of 3.5 million tonnes of Finland’s total carbon dioxide emissions per year and enables Finland to reach its climate goals.

Design work for Raahe’s planned new steel production process is currently underway and the plan is to transform Raahe as the third step after Luleå. The timing of the project will depend on SSAB’s financing and implementation capacity and the lessons learned from the Luleå project.

An environmental impact assessment (EIA) report has been prepared on the basis of the opinions and statements given about the power line project’s environmental impact assessment program, as well as the investigations made.

SSAB received a permit in March 2024 to transform the Raahe Works. The 400 kV grid connection project is proceeding. The grid connection will be built at Fingrid’s future substation in Hanhela, Pyhäjoki and is about 24 km long.

During the EIA procedure, the residents of the surrounding area and various stakeholders, such as municipalities, environmental organizations have been able to participate and share their views on the various options. North Ostrobothnia ELY Center has checked the adequacy and quality of the EIA report.

A modern production site will be built in Raahe, where side ovens and vacuums, thin die casting and rolling are integrated into the electric arc furnaces without the need to heat the slabs. The whole process is efficient and saves energy. With the new process, the current operations of the Raahe site in terms of traditional iron, steel and strip rolling production will be discontinued.

The change will take place in the current site area. The intention is that the production capacity remains approximately the same as today. The new production facility will be built on the same site as the existing one while the current production continuous to operate. The current and the new production will run side by side until the current production finally is phased out.

When transforming the Nordic production system, the Hämeenlinna site and tube mills will continue to serve as downstream processers of products from Raahe. The products made in Raahe will become coils, which will in turn go either to the customer or to Hämeenlinna for further processing into more advanced steel products and for distribution. Fossil fuels that are used today will be gradually replaced by fossil-free energy sources, and we will need to ensure the availability of fossil free energy sources. The Hämeenlinna site covers 54.6 hectares and has 7.8 km of railroad track.

There is a daily connection between Raahe and Hämeenlinna. A megatrain, comprising 53 wagons and weighing 5,200 tonnes when fully loaded, regularly takes steel coils from Raahe to Hämeenlinna for processing. The megatrain transports more than a million tonnes of steel annually. Hämeenlinna will be further developed in line with the new production processes. However, the close connection and roles of Raahe and Hämeenlinna as well as those of smaller processing sites in Finland will continue.

The focus in production and development work has been on premium products, which give added customer value. Both Raahe and Hämeenlinna are IATF (International Automotive Task Force) certified units by automotive industry.

SSAB is one of the largest North American producers of steel plate and coil, serving many industrial markets including energy, construction, agriculture and transportation. SSAB is committed to being North America’s steel supplier of choice, with five state-of-the-art facilities strategically located in key regions across the USA and Canada. Our production sites are located in Iowa and Alabama.

The North American production base is characterized by industry-best quality and a leading cost position. The modern production facilities utilize EAFs and 99% of the raw material is scrap metal. The durability and high strength of plate and coil produced by SSAB Americas means it lasts a long time, adding years to the lifecycle of products and reducing customers’ carbon footprint.

SSAB Americas plays an important part on our journey towards fossil-free steel. SSAB Zero^TM steel, introduced in 2023, is produced at our Montpelier site, which was chosen because of the availability of green electricity (wind towers) and the ability to source biogas and biocarbon. SSAB Americas has commitments for Zero from several customers in the energy, heavy transport and heavy equipment sectors.

Today, SSAB has close partnerships with end users and fabricators to develop unique customized products. Our flexible production system also allows for a wide range of our new SSAB Zero^TM products. Initially, slabs from the EAF and rolling mill in Montpelier are shipped to our European rolling mills. Moving forward with SSAB Zero^TM, the output can be extended to heavy plate products and plates to the quenching lines at the site in Mobile.

Spending on infrastructure is driving demand in the US market, thus creating future business opportunities for SSAB. Investments in energy production, with support from the Inflation Reduction Act, IRA, means that the expansion of wind power continues with continued availability of green electricity.