LKAB starts collaborating with NCC and Peab for its green transformation

June 20, 2024

LKAB is strengthening its strategic partnership with leading Swedish construction companies ahead of the planned expansion and transformation of the business. LKAB has signed agreements on long-term strategic collaboration with NCC and Peab in respect of its plans to start carbon-free sponge iron production in the Swedish orefields. The declarations of intent concern both new facilities and joint development work.

LKAB is embarking on one of the largest industrial projects in Swedish history, in which the company will develop production of carbon-free sponge iron. The investments place exceptional demands on expertise, logistics and leadership.

“We are currently planning for a gradual expansion and transformation of our business in order to strengthen our competitiveness and reduce carbon emissions in the iron and steel industry over a long period of major investments in the north, starting in Gällivare. It’s important for us to connect with partners that have expertise, capacity and experience of the type of challenges we see ahead of us,” says Jan Moström, President and CEO of LKAB.

The deeper collaboration with Peab includes a declaration of intent between the parties linked to a construction contract for LKAB’s planned hydrogen facility for the Hybrit demo plant, including infrastructure and foundation work as well as port works in Luleå.

“As a strategic partner of LKAB, we’re proud to play an important role in the transformation of their business. Peab has many years’ experience of large industrial projects in the region, where we have built everything from factories to logistics facilities and major ports. Working together from an early stage creates the best opportunities for effective implementation, a highquality product and a satisfied client,” says Jesper Göransson, President and CEO of Peab.

The strategic collaboration between LKAB and NCC includes a declaration of intent relating to a direct reduction plant and surrounding infrastructure in Gällivare. The companies have already started on the planning work, enabling them to pool their experience, information and knowledge in order to produce concrete solutions for various development projects in the Swedish orefields that LKAB plans to build in the coming years. The collaboration agreement has been signed with the new NCC Green Industry Transformation business area.

“The industry is facing a system change and needs completely new and different skills than previously. By being involved early in the process for these groundbreaking development projects, we as contractors can contribute both resources and specialist expertise to make that change possible. Together with LKAB, we have an exciting time ahead of us,” says Tomas Carlsson, President and CEO of NCC.

Contact: Niklas Johansson, Senior Vice President Communication and Climate LKAB. Tel: +46 (0)10-144 52 19. E-mail:

LKAB is an international mining and minerals group that offers sustainable iron ore, minerals and special products. We are committed to developing carbon-free processes and products by 2045, leading the transformation of the iron and steel industry. Since 1890 we have developed through unique innovations and technological solutions and are driven forward by almost 5,200 employees in 12 countries. In 2023, the LKAB group had sales of about SEK 43 billion.

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