Swedish company Stegra has announced the launch of a new round of financing to support the construction of the world's first large-scale environmentally friendly steel plant in Boden, Sweden, after receiving strong promises from existing investors.
According to Henrik Henriksson, CEO of the company, the new support from the founders and leading investors strengthens the credibility of the Stegra business model. He stated that the company has a solid order portfolio, a competitive cost structure, and proven execution capabilities.
The proceeds from this round of financing are expected to account for up to 15% of the total financing of Stegra projects, including new equity, debt instruments, outsourcing agreements, and selected strategic partnerships. In addition to equity commitments, Stegra is actively negotiating with outsourcing partners.
Mr. Henriksson stated that the project is more than 60 percent complete, and the clear plan and timeline have been extended by three months to include additional features. The new financing will strengthen the implementation of the project and provide financial support.
The funds raised will be used for:
To cover the expanded scope of the project related to the attraction of resources for the railway and port infrastructure, which are currently being designed, built and owned by Stegra.Compensation for higher costs of materials, construction and installation.Compensation for government subsidies that were not provided despite the preliminary approval of the EU Commission.Maintaining reasonable liquidity and stability during the remaining construction period.After the completion of the Boden green steel project, Stegra will become the leading steel producer in Boden. a participant in the decarbonized steel market in Europe, providing large-scale production of steel without the use of fossil fuels with integrated logistics and renewable energy infrastructure.
Steelorbis.com
