Finland company invests in first carbon free steel recycling plant

The project brings the opportunity to use even more precise carbon footprint calculations and cleaner recycled steel in their production

Finland company invests in first carbon free steel recycling plant

Kuusakoski, a forerunner of the green transition, is going to build a market first steel recycling plant that will operate 100% carbon free and utilise the latest technology. The investment responds to growing demand for recycled metals in Finland and Sweden, and it will increase the annual recycling capacity of Kuusakoski by 150 000 tonnes, or 25 %.

The new plant will be built in Veitsiluoto, Kemi (west Finland). The port connection effectively links sea freight to rail and road transport.

“In Veitsiluoto we are close to our largest end customers, and can offer superior, smart delivery models and competitive delivery times”, says Mikko Kuusilehto, President and CEO.

“We are seeing the steel industry beginning to move towards carbon free production. Our new plant will bring with it carbon free processing, which will enable our customers to further reduce their climate impact throughout the value chain.”

Investment brings more benefits

With the investment, Kuusakoski’s customers, such as Outokumpu, the global leader of sustainable stainless steel, will have the opportunity to use even more precise carbon footprint calculations and cleaner recycled steel in their production, which can further reduce the carbon footprint of steel products.

“Outokumpu is committed to ambitious climate goals and we already use mainly recycled steel in our production. Kuusakoski’s new steel recycling plant is being built in a logistically ideal location from the perspective of our Tornio steel mill. In addition to carbon-free operations and their proximity, the quality of materials and the traceability of the entire supply chain are key to us as a responsible operator,” says Juha Erkkilä, Vice President, Group Sustainability, Outokumpu.

Technology

The new plant will produce significantly higher levels of purity in its recycled raw materials and it will have improved separation capabilities. This is possible because of new technology used in the pre-treatment and analysis of the material. The unique pre-treatment technology, for example, has been developed together with leading experts and there is no similar setup being used anywhere else.

The total value of the investment is 25M€ of which 2.8M€ will be financed by Business Finland from RRF (Recovery and Resilience Facility) funding. The building of the plant is planned to begin next year. The new plant is scheduled to be in operation in 2025 and once in operation it will employ approximately 20 people.