Swedish specialty steel producer SSAB has announced that it has started construction of a new quenching line at its Oxelösund steel mill in Sweden, marking the implementation phase of a SEK 3.3 billion ($331.6 million) investment announced in May this year.
The new facility will increase the company's annual production capacity for advanced high-strength wear-resistant and protection steels by approximately 100,000 mt. Production is scheduled to begin in 2030.
New quenching line to expand Hardox and Armox production capacity
The investment is aimed at expanding SSAB Special Steels' capacity for advanced products, including Hardox wear-resistant steels and Armox protection steels, which are used in demanding industrial, safety and defense-related applications.
Quenching is a heat-treatment process in which steel is rapidly cooled to achieve high hardness and strength. The new line will enable SSAB to increase production of some of its most advanced and high-value steel grades.
According to the company, the investment forms part of its strategy to strengthen its position in premium steel products and expand its offering of advanced steels.
Johnny Sjöström, SSAB President and CEO, stated that the investment would increase capacity for differentiated products while the company finalizes the conversion of its Oxelösund steel mill. He also highlighted the role of modern electrified technology in expanding SSAB's production system and meeting customers' requirements for performance, durability and protection.
Investment accompanies Oxelösund steel mill transformation
The construction project is being carried out alongside SSAB's broader transformation of its Oxelösund operations, which includes replacing conventional blast furnace-based steelmaking with electric arc furnace (EAF) technology.
According to SSAB's second-quarter 2026 report, the new EAF at Oxelösund is under installation, with production scheduled to begin in the second quarter of 2027.
