SSAB announced that the conversion of its Oxelosund steel mill in Sweden to fossil-free production will be delayed due to appeals related to species protection permits connected to a new power line project.
According to the company, Vattenfall Eldistribution, which is responsible for constructing the power line supplying electricity to the new electric arc furnace (EAF), informed SSAB that the grid connection will be delayed following ongoing legal appeals.
SSAB stated that construction of the new EAF is continuing according to plan, although the production start-up, previously scheduled for early 2027, will now be postponed.
The delay is linked to appeals concerning permits and exemptions related to protected plant species and the capercaillie bird under Sweden’s Species Protection Ordinance.
SSAB said the delay is not expected to have a material impact on the group’s earnings, cash flow, production, or customer deliveries during 2026.
The company added that once the Oxelosund conversion project is completed, Sweden’s total carbon dioxide emissions are expected to decrease by around 3pct.
SSAB applied for increased power capacity for the project in 2016, while permitting processes for the related power line have been ongoing since 2020.
SSAB is a producer of advanced high-strength steel (AHSS) and quenched and tempered (Q&T) steel products, with an annual crude steel production capacity of approximately 8.8 mln tons across operations in Sweden, Finland, and the United States.