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BUSINESS

Norway IT budgets soar as ‘cloud’ grows

Over half of all Norway’s 335,000 companies hiked their budgets for information technology, or IT, in 2011, according to a study commissioned by some of Norway’s 500 largest private and state companies.

Most, or nearly 80 percent, answered a study by saying their 2011 IT spend was aimed at growth — nearly double the number that used the “G” word in last year’s survey.

The study IT i Praksis presented by the Norwegian Computer Society and conducted by Rambøll Management Consulting with funding from newly merged EDB Edergo Group, also showed that business rarely stuck to its IT spending limits, with half of all budgets burst or never spent. Likewise, 14 percent of companies surveyed said their budgets were 14 percent lower in 2011, year-on-year.

Some thought controversial cloud computing, or “software as a service” (not a product we buy) was the reason for more spending.

 “The last 12 months have seen growth that has outstripped many people’s expectation by a surprisingly wide margin,” said EDB chief exec Terje Mjøs.

He also warned that at least Denmark was now coming to grips with security of information issues to do with storing all our information with software makers rather than on the software we “bring home in a box”.

Meanwhile, one in two Norwegians works for the state, and the study was aimed at mapping trends in state enterprise as well as the private sector. Most IT budgets in both types of organizations were said to be aimed at “new projects”.

Companies owned in part by one of the two levels of government, mostly state or municipal, generally spent less on new IT, with just 41 percent saying they hiked their 2011 budgets.

Inline with stereotypes, perhaps, government-owned or run entities replied that they had spent 27 percent more than planned. Entirely private businesses reported spending 37 percent less than budgeted.

Norway’s tens of billions of oil dollars — just 3 million adults toying with the wealth neighbour Russia shares between 150 million people and six time zones — has been a torrent of funding for all sorts of municipal enterprise. While villages have hired philharmonics with stately, trickle-down cultural funding, municipalities are establishing internet service providers in control of families’ TV, internet and telephone services.

Some of those municipally owned IT companies were raking in money. The study revealed a 21 percent leap, with some 37 percent of businesses having bought new software as a service rather than as a product.

The expense saved on shipping and production has further swelled public coffers for those local governments involved in IT enterprises.

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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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