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ENVIRONMENT

VW fires ‘dieselgate’ executive in his US jail cell

Volkswagen has sacked an executive who was jailed for his role in the German automaker's "dieselgate" scandal - by sending a letter of dismissal to his US prison cell.

VW fires 'dieselgate' executive in his US jail cell
Photo: DPA

German newspaper Bild am Sonntag said it learned from sources close to the firm that Oliver Schmidt, who was this month sentenced to seven years in jail, was summarily dismissed in a letter sent to his prison in Milan, Michigan.

“His employer is leaving him in the lurch,” the daily wrote, accusing Volkswagen of turning Schmidt into a “global scapegoat” for the emissions cheating scam.

The 48-year-old, who led Volkswagen's US regulatory compliance office from 2012 to March 2015, was arrested while on holiday in Miami in January.

In August, he pleaded guilty to charges he had conspired to commit fraud and violate the US Clean Air Act.

He was also ordered to pay a $400,000 fine.

Seven other current and former VW executives have been charged by US prosecutors, while several investigations into the cheating are ongoing in Germany.

VW admitted in 2015 to equipping about 11 million cars worldwide with defeat devices, including about 600,000 vehicles in the United States.

The scam allowed the cars to dupe emissions tests while emitting up to 40 times the permissible levels of harmful nitrogen oxide during actual driving.

The scandal has so far cost the auto giant over € 25 billion in fines, settlements and remediation.

In arguing for the seven-year sentence, prosecutors said Schmidt had participated in “one of the largest corporate fraud schemes in American history” and led efforts to cover up the company's misconduct in the summer of 2015.

But Bild said Schmidt was far from alone in knowing about the scheme, and accused Volkswagen of trying to pin the blame “on a single engineer”.

“Dozens, if not hundreds of employees were aware of the emissions fraud,” it wrote.

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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