Steelmaker SSAB to Invest €4.5 Billion in New Mini Mill in Northern Sweden
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 02 2024
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Source: Bloomberg
- Swedish Steelmaker Investment: SSAB plans to invest 4.5 billion euros in a new plant in Lulea, aiming to clean up the steel industry.
- Environmental Impact: The investment will remove 7% of Sweden's carbon dioxide emissions and save €2 billion in future expenditures.
- Market Reaction: SSAB's decision led to a 4.9% drop in shares, with concerns about significant spending needs and lack of government support.
- Fossil-Free Production: SSAB aims to be largely fossil-free by the end of the decade, with plans for a fossil-free conversion in Raahe as well.
- Impact on Finland: The decision not to invest in Raahe affects Finland's carbon neutrality target, as Raahe's blast furnaces are a major source of carbon emissions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
