SSAB and Danieli have signed an Early Service Agreement (ESA) on the pre- and engineering phase for the Swedish steelmaker’s Luleå mini-mill project.

Under the agreement, Danieli will supply a highly-automated technology solution for the new mini-mill, consisting of two electric arc furnaces, secondary metallurgy, caster and strip mill.

The new Luleå mill will have a capacity of 2.5Mt/year and will consist of two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSAB’s specialty products, and a cold rolling complex to serve the mobility segment with a broader offering of premium products. The new mill will be supplied with a mix of fossil-free sponge iron from the Hybrit demonstration plant in Gällivare and recycled scrap.

Danieli will supply a melt shop consisting of two DigiMelters featuring a Q-One power feeder, continuous scrap charge and a Melt Model suite for dynamic control of the melting profile, plus two twin-ladle refining stations and two twin-tank vacuum degassers.

The startup of the new mill is planned for the end of 2028, with full operating capacity one year later. Environmental permits are expected at the end of 2024. When completed, SSAB will decommission the existing blast furnace-based production system in Luleå, which the steelmaker claims will reduce Sweden’s CO2 emissions by 7% in addition to the 3% from the Oxelösund mill conversion.