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SSAB Sweden to invest $4.8 bln in fossil-free steel mill

 Swedish steelmaker SSAB (SSABa.ST), opens new tab will invest 4.5 billion euros ($4.83 billion) in building a fossil-free mini-mill in Lulea, Sweden, the company said on Tuesday, more than previously expected as inflation and higher contingencies added to costs.
The company’s shares fell 5.3% by 0926 GMT.

SSAB, the biggest carbon emitter in both Sweden and Finland, says the project will ultimately have a positive impact on emissions and earnings.

“The new mini-mill will have a better cost position with lower fixed costs, higher efficiency, shorter lead times and eliminated CO2 costs,” SSAB said in a statement.
It will close the current blast furnace-based production system once the new mill is completed, enabling a 7% reduction of Sweden’s total CO2 emissions, it said.

The start-up of the mill, which will have an annual capacity of 2.5 million metric tons, is expected by the end of 2028 with full capacity one year later.

“Today’s announcement presents material upside risk to the total envelope,” JPMorgan wrote in an analyst note.
SSAB said the timing of the plant in Raahe, Finland would depend on the financing and execution capacity, as well as learnings from the Lulea project.
The company’s transformation of its Oxelosund mill to cut emissions was proceeding as planned, SSAB said.
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