According to the Stegra CEO, the new funds amount to 15 percent, or around ten billion kronor, of the total cost, which is currently around 6.5 billion euro, just over 70 billion kronor. The new financing consists of a mix of new equity from the larger owners, debt, so-called outsourcing, and selected strategic partnerships. Henrik Henriksson hopes that this will be finalized within the next two months.
We have completed 60 percent of the entire project to date and we are completing approximately 1 percent per week. Now we can look forward to the project and see what cost level we will have, but also what risks and opportunities we have, he says.
Increased costs
Stegra, whose business idea is to manufacture more or less fossil-free steel, has been affected by some increased costs, including general inflation, higher costs for electrical installations, but also as a result of the company now owning infrastructure such as railways and the part of the harbor in Luleå that is necessary. In addition, the company was denied a government investment via the Industry Leap. At the same time, Stegra hopes to be able to outsource some ancillary activities to external parties to save money.
Production start is now set to around the turn of the year 2026/2027.
And then it will probably take up to 12-18 months before we have certified all products and we can run the entire plant at full capacity, says Henrik Henriksson.
Questioned supplier
The great need for electricity is secured, according to Henriksson. The iron ore, which is to be used for steel production, is purchased from Canada, and the questioned Brazilian mining company Vale, which is blacklisted by several major investors, such as the Norwegian oil fund.
They have a history that many mining companies have, regardless of where in the world you come from. Our assessment regarding Vale is that they have a very solid work on their sustainability position and they have very high ambitions and goals as well, says Henriksson about the criticism.
The idea is that Stegra will have more Swedish iron ore in the long term. Previously, LKAB said no, but test deliveries will begin next autumn.
