Investing in a sustainable future Romina Pourmokhtari, together with representatives from Ovako and other key stakeholders, emphasized the importance of investing in energy-efficient and fossil-free industry. She said, during her speech, Marcus Hedblom, President and CEO of Ovako Group, also said: “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 this 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.” Boxholm facility and furnace modernization The Boxholm facility comprises a fine section mill for producing round and flat bar, and a medium section mill for producing profiles. Before rolling, the furnace is needed to heat the steel to a temperature close to 1100°C. It can handle up to 50,000 tons a year.
This furnace was the last across all our sites to still be fueled by oil and air. It has now been completely rebuilt and upgraded to burn an oxyfuel mix of liquid petroleum gas (LPG) and oxygen. One of the key aims in the upgrade was to deliver the future flexibility to use any suitable gas as fuel. Future-Ready Fuel Solutions and Performance Gains This could be biogas, which is an environmentally friendly, renewable energy source produced by the breakdown of organic matter such as food scraps, animal waste or forest biomass. Or we might use hydrogen.
While the initial benefits of the new furnace are impressive in terms of enhanced energy efficiency and reduced carbon dioxide emissions, they are just the start. We are confident that further refinements will bring even greater benefits. Furthermore, the new furnace burners ensure more even heating that has boosted productivity and quality. Where the furnace once handled 14 tons of steel an hour, this is now up to 19 tons.
Bright future for Hällefors In addition to the Boxholm furnace, we are investing over 6 million euros to modernize our main Bright Bar facility. The modernization project, taking place from 2024 - 2026, will improve production efficiency, improve quality, and secure our long-term competitiveness. In the summer of 2024, we installed new cutting, chamfering, and milling equipment. This allows us to handle all machining in-house, reducing unnecessary handling and transportation risks. The result is streamlined operations, improved efficiency and higher product quality for customers. The next step at Hällefors is a major investment in a new peeling lathe, set to be operational in 2026. This will expand the product range, allowing us to offer diameters up to 130 mm, and further improve productivity and quality. These investments reaffirm our commitment to sustainability and innovation. By modernizing our peeled bar operations, we will reduce internal transportation, enhance efficiency, and lower Ovako’s environmental impact. Decarbonization Ambassadors We have noticed, and encourage, an increased level of customer inquiries regarding carbon footprint data on our products and our sustainability activities. To promote efficient ways of working, close our customers, and build further upon our knowledge-sharing culture, we have established a network of Decarbonization Ambassadors in our sales units and customer technical support functions. Coordinated by our sustainability and decarbonization specialists, the network meets regularly to build and share knowledge and further advance Ovako’s product offering and support to customers seeking low carbon footprint solutions.
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