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BUSINESS

Germany wants cash back from Nokia

Germany’s research ministry has joined calls to demand a return of subsidies from Finnish mobile phone maker Nokia which is under fire from Germans for moving production to Romania.

Germany wants cash back from Nokia
Props during a protest against Nokia in Bochum. Photo: DPA

Germany’s Federal Research Ministry on Saturday confirmed media reports that they are asking back for subsidies worth €4 million from embattled Finish handset maker Nokia.

A spokeswoman for the Ministry said there were “huge doubts” that Nokia’s use of the subsidies to promote the development of antennas and wireless communication networks was still justified after the company announced it was closing its plant in the city of Bochum and moving to Romania instead. The Ministry has sent a letter to the company urging it to explain which patents stemmed from the projects and which German plants profited as a result.

If Nokia fails to come up with a “substantial answer,” it will have to pay back the subsidies, the spokeswoman said.

The state of North-Rhine Westphalia where the Bochum plant is located has already demanded the return of subsidies worth €41 million. State authorities accuse the company of violating the conditions of its agreement for receiving subsidies from the state because it did not create the minimum number of 2,800 permanent jobs at the plant that had been promised under the deal.

Nokia sparked national outrage in Germany when it announced in January that it was closing its Bochum plant and moving to low-cost Romania by mid 2008. Around 2,300 Nokia employees in Germany will be affected by the closure.

Nokia claims it has become too expensive for the company to continue manufacturing mobile phones in Germany. The move prompted some politicians to call for a boycott of Nokia phones.

ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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