The new furnace reduces energy consumption by 50 percent and significantly lowers carbon dioxide emissions. It is also future-proofed to run on fossil-free hydrogen, making it a key part of Ovako’s and the region’s transition towards a more sustainable future. 

Today’s inauguration was attended by Sweden’s Minister for Climate and the Environment, Romina Pourmokhtari, who, together with representatives from Ovako and other key stakeholders, emphasized the importance of investing in energy-efficient and fossil-free industry. 

-Ovako is a brilliant example of how industrial investments can drive both climate benefits and economic growth. With projects like the hydrogen plant in Hofors and the new furnace here in Boxholm, Sweden is strengthening its position as a leader in sustainable steel production — setting an example for the entire world, said Romina Pourmokhtari in her speech during the inauguration. 

The new furnace is a central part of Ovako’s strategy to reduce emissions throughout the entire production chain. Thanks to its energy efficiency and potential to switch to hydrogen, the furnace can significantly reduce carbon dioxide emissions in the Östergötland region. 

-This is a big day for Ovako and the entire region. With this investment, we are taking concrete steps to reduce the climate impact of the industry and move towards more sustainable steel production. At the same time, we ensure that we can deliver high-quality steel with the lowest possible carbon footprint, said Marcus Hedblom, President and CEO of Ovako Group. 

About the new furnace in Boxholm 

  • The new furnace reduces energy consumption by 50 percent compared to previous technology and lowers CO₂ emissions by 6,000–7,000 tonnes annually. 

  • It is future-proofed to operate on fossil-free hydrogen, which could eliminate emissions from the heating process entirely. 

  • The SEK 60 million investment is part of Ovako’s long-term strategy to reduce carbon dioxide emissions by 80% compared to 2015 levels. 

With this investment, Ovako continues to pave the way for a more sustainable steel industry and creates opportunities for future innovations in fossil-free production. 

At Ovako, we specialize in clean, high quality engineering steel tailored to the needs of customers in the bearing, transport, and manufacturing sectors. Our high-quality steel, based on 97% recycled steel, not only ensures lightweight and resilient products but also enables more sustainable and environmentally friendly solutions. With 2600 dedicated employees and a global presence spanning over 30 countries, along with approximately EUR 1.1 billion in sales, Ovako, a subsidiary of Sanyo Special Steel and a proud member of Nippon Steel Corporation, stands at the forefront of the steel industry. Our purpose is clear: Together we create steel for a decarbonized society. Discover more about our innovative solutions at www.ovako.com, www.sanyo-steel.co.jp, and www.nipponsteel.com 

Saiva Zalkalns
Director and Head of Group Communications
+46 (0) 8 622 13 17
saiva.zalkalns@ovako.com