Swedish steel company SSAB has reportedly signed a letter of intent with German defense giant Rheinmetall to supply fossil-free steel from its Oxelösund facility, according to public broadcaster SVT. The deal would make Rheinmetall the first defense industry customer for SSAB's environmentally friendly steel production.
Per Elfgren, division manager for Special Steels at SSAB, stated that Rheinmetall becomes 'the first customer within the defense industry that jumps on this.' The steel will be produced using an electric arc furnace currently under construction in Oxelösund, which is expected to be completed by the end of this year with production starting early next year.
the first customer within the defense industry that jumps on this
The new production method involves melting down old scrap metal in the electric arc furnace to create steel with a lower carbon footprint. Elfgren acknowledged the challenge of phasing out traditional blast furnaces and coke plants but noted the advantage of established technology, citing SSAB's existing facilities in the United States that already use similar production methods.
While the exact impact on employment at SSAB's Oxelösund plant remains difficult to predict, Elfgren expressed optimism about the deal, calling it 'confirmation that we deliver good steel and that having a stable business in the foundation ensures that we have jobs here in Oxelösund.'
confirmation that we deliver good steel and that having a stable business in the foundation ensures that we have jobs here in Oxelösund