ESL Shipping and SSAB extend cooperation in raw material transports

(Posted on 27/03/25)

ESL Shipping and global steel manufacturer SSAB have agreed on a multi-year extension of the agreement covering SSAB’s inbound raw material sea transports within the Baltic Sea and from the North Sea. In addition, the new contract covers transport of SSAB’s fossil-free sponge iron produced with HYBRIT technology including the possibility of fossil-free shipments. The sea transport volume covered by the agreement is estimated to be 6–7 million tons annually.

“We are extremely pleased to continue our long-term sea transport partnership with SSAB. Our strategy is based on sustainability leadership and together we share the common vision for fossil-free sea transports”, says Mikki Koskinen, Managing Director of ESL Shipping.

“SSAB appreciates the long-term collaboration with ESL Shipping, and the recent extension secures the unique needs of coming years' raw material supply for our Nordic operations, with high focus on continuous improvements of energy-efficiency and sustainability”, says Jani Verkasalo, Procurement Director of Raw materials and Energy, SSAB.

With this agreement, the companies continue the long-term work to improve efficiency and reduce emissions from SSAB’s raw material logistics. ESL Shipping is well-prepared to support SSAB in its transition to fossil-free steelmaking. The company announced in October 2024 that it would invest around 186 MEUR in four 17,000 dwt multipurpose vessels, which can operate fossil-free using green methanol.

“This extended cooperation with SSAB offers strong evidence that ESL Shipping strategy is productive. We have made major investment decisions during the past years, the latest in handysize vessels that can operate on hydrogen-based E-fuel and earlier in electric hybrid coaster sized vessels. I am glad to see that these investments are well received by our customers”, says Rolf Jansson, CEO of Aspo Plc and Chairman of the Board of ESL Shipping.

ESL Shipping aims to be at the forefront in supporting its industrial partners towards delivering entirely fossil-free products and services. The competitiveness of the next-generation vessels is based on increasing customer preference towards fossil-free cargo solutions over time, market-leading energy efficiency, efficient and flexible cargo space design and lower operating costs.

ESL Shipping is the leading carrier of dry bulk cargoes in the Baltic region.