The state-of-the-art fossil-free mini-mill in Luleå, Sweden, will have a capacity of 2.5 million TPA with two electric arc furnaces, advanced ladle metallurgy and an integrated rolling mill. 

May 5, 2025

SSAB has secured EUR 2.3 billion of green financing for the transformation project to build a state-of-the-art fossil-free mini-mill in Luleå, Sweden. The transformation project is key to enable SSAB to re-position SSAB Europe as a maker of premium products, lower production costs, and reduce CO₂ emissions from operations. 

The new mill will have a capacity of 2.5 million TPA with two electric arc furnaces, advanced ladle metallurgy and an integrated rolling mill. The investment also includes a cold rolling complex, advanced galvanizing, as well as continuous annealing.

Other advantages include lower costs, shorter lead times, as well as better ability to manage swings in demand. The new steel mill will be able to use a flexible mix of fossil-free sponge iron, pig iron and recycled scrap.

When the new mini-mill is completed, SSAB will close the current blast furnace-based production system in Luleå, which will largely remove the CO₂ emissions from existing operations. The reduction corresponds to 7 percent of Sweden’s current CO₂ emissions.

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The company has signed green loan facilities with the Swedish National Debt Office (Riksgälden), the Italian Export Credit Agency (SACE) and the Nordic Investment Bank, having a long-term maturity structured to support the full lifecycle of the project.