SSAB calls for improvements to the permitting process in Sweden

The biggest obstacle for the industry is the unpredictability of regulations

Johnny Sjöström, CEO of the steel company SSAB, is calling for the acceleration of the permitting process for industrial investments in Sweden.

He made his position known after the company announced a delay in obtaining environmental permits for its planned electric arc furnace in Oxelösund.

Sjöström notes the absurdity of the fact that the electrification of SSAB’s production in Oxelösund could take more than 10 years, if it is even possible at all. According to the latest reports, it is still unknown when the newly built power line will be able to be put into operation.

He emphasizes that in a complex security situation, steel production is also of strategic importance from a preparedness and defense perspective. At the same time, it is clear that Sweden must set high standards for the environment and climate.

“However, high standards require efficient and predictable processes. For industry, the biggest obstacle is not the level of requirements, but unpredictability,” noted Sjöström.

He proposes three key changes:

• clearly defined timeframes for the entire process of obtaining permits and connecting to the grid;
• a reasonable distribution of risks and costs, especially when industry has no ability to influence the outcome;
• consolidating processes and managing them as a single entity—with clear accountability for the final outcome.

“Now, as Sweden strengthens both its industrial base and its civil and military preparedness, ambitious plans alone are not enough. Resilience and defense capability start with effective systems, a stable energy supply, and access to strategic materials,” noted Sjöström.

He emphasized that industry is ready to take responsibility; the government, relevant agencies, and energy companies must now do the same.

It should be noted that in 2024–2025, several major steel producers announced the suspension of decarbonization projects and the postponement of their deadlines, citing market conditions and regulatory uncertainty

Last year, German steel producers expressed concern about the bureaucracy involved in documenting emissions. Additionally, ESG reporting became an extra burden, forcing companies to place additional responsibilities on their staff.

As reported by GMK Center, SSAB has indefinitely postponed the launch of the EAF in Oxelösund. The issue lies in obtaining environmental approvals for the construction of a power line to connect the unit to the grid. Vattenfall Eldistribution, the company responsible for building the new power line, cited delays due to legal challenges regarding the protection of rare animal species.

Last October, SSAB had already postponed the launch to early 2027 due to similar issues. The construction of the new furnace itself is proceeding on schedule.