Carbon costs and rising green steel demand justify €4.5 billion mill investment for SSAB
Set to begin operations by 2029, the company's new fossil-free mill will expand production capacity by 0.5 million tonnes a year.
Swedish company SSAB is investing €4.5 billion in a new mill that is expected to produce 2.5 million tonnes of fossil-free steel a year – a sign that carbon costs and rising green steel demand are strengthening the business case for large capital investments.
The company expects this investment to result in “significant value creation”, as demand for green steel is rising. As an example, truck maker Scania, which sources most of its steel from SSAB, signed a deal with the supplier to purchase only “carbon-free” steel from 2030 onwards.
