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BUSINESS

Business confidence buoyant for 2010

German business confidence is climbing, with companies more optimistic about the economy than they were at the end of last year, a poll released Wednesday has found.

Business confidence buoyant for 2010
Photo: DPA

The survey of 25,000 companies, conducted by the German Chambers of Industry and Commerce (DIHK), found that in the 10 most important sectors, firms are clearly confident that 2010 will be better for business than last year.

The report found that confidence in an upswing in exports was largely responsible for the buoyant mood, according to daily Bild. The DIHK was set to release the full survey Wednesday morning.

But firms also warned of dangers threatening the rebound: rising energy prices, high wage bills and a lingering difficulty with obtaining credit.

Especially positive were the chemical industry, which employs 331,000 workers and the electrical industry, which employs 800,000, with 45 percent of companies improving their prognosis in the new year.

Research and develop businesses and the IT sector were also more optimistic. In the latter, some 38 percent of firms predicted an upswing in business compared with just 14 percent who believed it would go backwards.

One cloud on the horizon was a lack of qualified engineers.

The least confident of the 10 major sectors were the mechanical engineering sector – a key industry that includes machinery manufacturers and employs about 1 million workers – and the health and social services sector, which employs 3.3 million.

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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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