SSAB’s transformation journey is centred on installing more capacity for advanced premium steels, as well as decarbonising steel production. The new mill in Luleå, due to start operations at the end of 2029, is a key step in that direction. SSAB will be able to close the current blast furnace and the coking plant, eliminating the main source of the company’s CO2 emissions. The new mill will be based on Electric Arc Furnaces (EAF) technology, and can use a flexible mix of recycled scrap and sponge iron.
“Our ambition is to become the first steel company to offer fossil-free steel on the market and to largely eliminate CO2 emissions from our own operations. We will also improve the product mix with more premium products and high-strength steels. This project is essential to achieving those goals,” said Kati Vellinki, Vice President, Head of Treasury at SSAB.
The Luleå investment is backed by 2.7 billion euros in green financing, supported by export credit agencies in Europe, the Nordic Investment Bank, the Swedish National Debt Office and a group of 11 financial institutions. SEB played a key role in the financing.
“SEB has been a long-term partner for us,” said Vellinki. “They have shown commitment throughout the process, supported us with advisory services, and helped ensure the financing was completed smoothly.”
The financing is structured as corporate debt, not project finance, and includes guarantees from the export credit agencies and the Swedish National Debt Office. This approach allows SSAB to maintain flexibility and manage financial risks in a way that other financing solutions would not have provided.
SSAB’s green transition is not only a strategic business move that will strengthen its cost position and increase flexibility, but also a major environmental effort. The company’s investments in Luleå and Oxelösund are expected to reduce Sweden’s total CO2 emissions by up to 10 per cent.
“Decarbonisation is a core part of our DNA now,” said Kati Vellinki. “We are reshaping the company, and we need banking partners such as SEB who understand our journey and can support us both today and in the future.”
This text also appears in SEB's annual report for 2025.