Swedish steelmaker SSAB has today commenced construction work for an electric arc furnace in Oxelösund, marking an important milestone for the Swedish steel industry and for green steelmaking.

The importance of the occasion was evident by the presence of Swedish Prime Minister Ulf Kristersson.

SSAB intends to transform its entire Nordic production system around 2030 and this year took the decision to invest SEK 6.2 billion in a new electric arc furnace and related raw material handling in Oxelösund.

“We are now embarking on the large-scale construction and transformation of SSAB’s Nordic production system.”

Martin Lindqvist, president and CEO of SSAB.

“We are now embarking on the large-scale construction and transformation of SSAB’s Nordic production system,” said Martin Lindqvist, president and CEO of the Swedish steel giant. “Replacing traditional blast furnaces with electric arc furnaces is a multi-billion investment. Transformation of our Nordic production system will have a positive impact both locally and globally, and help our customers to reduce their carbon footprint. At the same time, we will keep local jobs and improve the surrounding environment,” he said.

SSAB regards its investment in Oxelösund as an important step in the company’s transformation to fossil-free steelmaking and to becoming a largely fossil-free business. It will strengthen competitiveness and contribute to creating new world-leading products and solutions for a strong, lighter and more sustainable world, says the company.

“The investment in Oxelösund will increase SSAB’s flexibility and earnings capability.”

Johnny Sjöström, head of SSAB Special Steels.

“The investment in Oxelösund will increase SSAB’s flexibility and earnings capability. The conversion to an electric arc furnace will mean that Oxelösund alone can deliver a reduction of around 3% in Sweden’s CO2 emissions,” says Johnny Sjöström, head of SSAB Special Steels.

SSAB has already made and delivered pilot volumes of fossil-free steel (SSAB Fossil-free™ steel) to strategic customers and taken a leading position in the green transition in the steel industry. This year saw SSAB take another important step with the launch of SSAB Zero™ – a steel based on recycled steel scrap and made using fossil-free electricity with no fossil carbon dioxide emissions.