Investments in the project will amount to about $600 million

Swedish steelmaker SSAB has started construction of an electric arc furnace (EAF) in Ökseläsund, marking an important milestone for the country’s steel industry and environmentally friendly steel production. This is stated in the company’s message.

SSAB intends to transform its entire production system in Northern Europe by about 2030. Investments in the EAF in Öxeläsund and related raw material processing will amount to SEK 6.2 billion (about $600 million), a decision announced in June this year.

«Replacing traditional blast furnaces with electric arc furnaces is a multi-billion dollar investment. The transformation of our production system in Northern Europe will have a positive impact both locally and globally and will help our customers reduce their carbon footprint. At the same time, we will preserve local jobs and improve the environment,» said Martin Lindqvist, President and CEO of SSAB.

The company sees the investment in Oxelesund as an important step in the transition to steel production without the use of fossil materials and energy sources.

«Switching to an electric arc furnace would mean that Oxelesund alone could reduce Sweden’s carbon emissions by around 3%,» says Johnny Sjostrom, head of SSAB Special Steels.

As GMK Center reported earlier, SSAB is the leader in wave energy technologies CorPower Ocean signed an agreement on the development of one of the world’s first wave power plants made of steel produced without the use of fossil fuels.

Also, SSAB is planning to increase its annual profit by at least SEK 10 billion ($968 million) from 2030 through the green transition.