SSAB postpones startup of electric arc furnace in Ökselosund until 2027

Swedish steelmaker SSAB has postponed the launch of an electric arc furnace (EAF) at its Oxelosund steel plant until early 2027. Initially, the company planned to complete the modernization and start producing steel at the end of 2026, but the schedule was shifted due to delays in the implementation of energy infrastructure, the company said in a report.

The key factor was the need to connect the new production facility to the power grid being built by Vattenfall Eldistribution. According to the updated plan, these works are expected to be completed only at the end of 2026, after which SSAB will be able to start testing the equipment.

The green transformation project at Oxelosund is one of the central elements of SSAB’s decarbonization strategy. It involves the replacement of blast furnaces and coke production with an electric arc furnace and scrap processing infrastructure. The modernized plant will continue to operate its rolling and heat treatment (Q&T) lines, which produce high-quality steel.

The total investment in the project is about SEK 8.2 billion, of which SEK 6.2 billion is directly related to the construction of the EAF and preparation of the raw material base, and another SEK 2 billion is for the development of the power grid.

Upon completion of the modernization, the company will become the first major producer in Sweden to completely abandon the blast furnace process, which will reduce CO2 emissions by about 50% and strengthen SSAB’s position as one of the leaders in the transition to green steel.

As a reminder, SSAB’s European division reduced steel shipments by 18% quarter-on-quarter to 737 thousand tons in the third quarter of 2025. The results were affected by weak demand in the EU market, as well as scheduled repairs, which cost approximately SEK 330 million.