SSAB begins construction of a new plant in Luleå

Swedish steel company SAAB has announced the official start of construction of its new green steel plant in Luleå.

The foundation-laying ceremony was attended by Swedish Minister of Energy, Business, and Industry Ebba Busch and SSAB CEO Johnny Sjöstrom.

“The start of construction is a historic milestone in the transition to fossil-free steel production,” the company said in a statement.

The new SSAB steel mill will replace the current blast furnace-based production and will have an annual capacity of 2.5 million tons. The facility will be equipped with two electric arc furnaces, an advanced secondary metallurgy system, an integrated hot rolling mill, and a cold rolling complex.

«We are building the most electrified steel mill in the world, which uniquely combines advanced technologies. This is an investment in both competitiveness and the climate. Thanks to the new technology, we are achieving lower costs, shorter lead times, and better ability to cope with fluctuations in demand,» said Johnny Sjöström.

The plant is scheduled to start operating at the end of 2029.

As Ebba Busch noted, these investments strengthen Sweden’s position as a leading industrial country and show that it is overcoming climate challenges through pioneering innovation and strong industrial leadership.

It should be recalled that in the summer, SAAB raised an additional €430 million in green financing to support the transformation in Luleå. Thanks to the new green loan, the company has completed the financial package necessary to implement the project.