Long-term collaboration between NCC and LKAB for construction projects in the Swedish Ore Fields (Malmfälten)
NCC and LKAB have entered a long-term strategic collaboration and signed letters of intent covering future construction projects for fossil-free sponge-iron production in Malmfälten. The first stage entails construction of a direct reduction plant together with associated infrastructure at Malmberget. Work has already commenced.
Image: Joakim Kröger, NCC
Huge investments are required to realize a fossil-free future and projects in northern Sweden play a key role in this respect. LKAB is planning on one of the largest industrial projects in Swedish history, where the company will develop sponge-iron production. The investments will place exceptional demands on expertise, logistics and leadership.
“We are currently planning for a gradual expansion and transition of our operations to enhance our competitiveness and reduce CO2 emissions in the iron and steel industry during a long period of major investments in the northern Sweden, starting in Gällivare. With our growing mineral resources of high-quality ore, Sweden’s almost fossil-free electricity system and the technology we have developed as part of the HYBRIT collaboration, we are a driving force in the creation of the fossil-free industrial supply chains that will build our competitiveness and the competitiveness of Swedish industry. For us, it’s important to establish relationships with partners that have the expertise, capacity and experience to tackle the types of challenges we believe we will face moving forward,” says Jan Moström, President and CEO of LKAB.
NCC and LKAB will collaborate from the very start to ensure that experiences, information and know-how leveraged and to continuously develop future construction projects. The first project pertains to the planned construction of a direct reduction plant together with associated infrastructure at Malmberget.
“We are taking the next step toward realizing our plans through a long-term collaboration with NCC. By collaborating closely from the start, NCC can contribute expertise throughout the planning process as well as building structural capital, working with knowledge transfers between projects, and taking overall responsibility for these large construction projects. A partner that can pursue safe and functional projects while also sharing our values is also important to us,” says Jan Moström, President and CEO of LKAB.
“The industry is facing a systemic shift and needs totally new and different skills compared with the past. By getting involved in the process for these pioneering development projects at an early stage, we – as contractors – can contribute both resources and special expertise to optimize implementation. We have an exciting time ahead of us with LKAB,” says Tomas Carlsson, President and CEO of NCC.
Planning has already commenced and is being conducted by the NCC Green Industry Transformation business area. As time schedules and project costs have yet to be set, the project has not been included in NCC’s orders received.