SSAB secures additional EUR 430 million green financing for Luleå

(Posted on 02/07/25)

Following the successful debt raising at the end of April 2025, SSAB has secured an additional EUR 430 million green financing to support its transformation project in Luleå, Sweden. The transformation project will establish a state-of-the-art mini-mill which plays a central role in repositioning SSAB Europe as a maker of premium products while significantly lowering costs and CO2 emissions. The latest financing is backed by the German Export Credit Agency Euler Hermes and complements earlier support from the Swedish National Debt Office (Riksgälden), Italian Export Credit Agency (SACE), and the Nordic Investment Bank. Crédit Agricole CIB structured the transaction.

SSAB’s EUR 4.5 billion investment in the new Luleå mini-mill was announced in 2024. The four green loan facilities total EUR 2.7 billion and are designed with long-term maturities that support the full project lifecycle. The financing package includes:

• A SEK 15 billion syndicated loan covered by the Swedish National Debt Office (“Riksgälden”) under the “Credit guarantees for green investments” program,
• A EUR 808 million syndicated loan backed by the Italian Export Credit Agency, SACE
• A SEK 1.15 billion loan from the Nordic Investment Bank (“NIB”).
• A EUR 430 million syndicated loan backed the German Export Credit Agency Euler Hermes Aktiengesellschaft

The loans are structured under the Green Loan Principles, in line with SSAB’s Green and Sustainability-linked Finance Framework.

“Securing this final piece of the financing marks a key milestone in our transformation journey,” said Leena Craelius, CFO of SSAB. “With this new green loan, we have now completed the financing package needed to deliver the Luleå transformation. It reflects strong support from our partners and the investment in Luleå will enable us to build an even stronger and more competitive SSAB by reducing costs, accelerating the product mix improvement and virtually eliminating all CO2 emissions from Luleå production.”

Crédit Agricole CIB has been acting as the Global Coordinator, Structuring Bank, and Green Loan Coordinator for the financing package.

The new mill will have a capacity of 2.5 million tonnes a year with two electric arc furnaces, advanced ladle metallurgy and an integrated rolling mill. The investment also includes a cold rolling complex, advanced galvanizing, as well as continuous annealing and is key to re-position SSAB Europe as a maker of premium products.

Other advantages include lower costs, shorter lead times, as well as better ability to manage swings in demand. The new steel mill will be able to use a flexible mix of fossil-free sponge iron, pig iron and recycled scrap.

When the new mini-mill is completed, SSAB will close the current blast furnace-based production system in Luleå, which will largely remove the CO2 emissions from existing operations. The reduction corresponds to 7% of Sweden’s current CO2 emissions.

Latest News

Bunge closes agreement to acquire NWT grain elevator assets

Bunge has successfully closed its purchase agreement for the grain elevator assets of North West Terminal... Read more

NGFA applauds Senate committee for advancing Grain Standards Act reauthorisation

The National Grain and Feed Association (NGFA) in the USA has applauded the Senate Agriculture Committee... Read more

Rio Tinto announces board changes.

As Rio Tinto previously reported, the size of its Board peaked at 14 Directors during a transitional... Read more

ADM advances quality capabilities with new central milling laboratory

ADM , a global leader in human and animal nutrition, has celebrated the opening of its new Central Milling... Read more

Bunge announces reporting segment changes and recast outlook

Bunge Global SA has announced that it has changed its segment and volume reporting to align with the... Read more

Open Trade Coalition calls for bold and open EU trade policy

As the European Parliament prepares for the confirmation hearings of the new Commissioners, the Open... Read more

Rio Tinto Q3 results show strong production across the portfolio

Multinational mining company, Rio Tinto, has releases its third quarter 2025 production results showing... Read more

Robe River JV to invest $733m to extend Western Australia iron ore mine

Rio Tinto, Mitsui and Nippon Steel will invest $733 million1 (Rio Tinto share $389 million) to develop... Read more

Cargill deploys AI robot dog 'Spot' to enhance safety, reliability and innovation

Cargill has introduced Boston Dynamics’ four-legged robot, Spot, at its Amsterdam Multiseed crush... Read more

Holcim strengthens West Australia presence with BGC acquisition

Holcim Australia has announced that Cement Australia (CA) - its joint venture with Heidelberg Materials... Read more