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Swedish Steel Startup Stegra Gets State Aid
The 390 million kronor grant aims to help Stegra secure further capital amid higher costs and financing scrutiny, with 60% of the low-carbon steel project completed, the agency said.
- The Swedish Energy Agency announced on Wednesday it was giving Stegra 390,000,000 kronor through the Industrial Leap programme, aiming to increase its chances of securing additional capital.
- In recent months Stegra's finances have come under increased scrutiny, with French investment fund Hy24, a major shareholder, urging government intervention after an October financing round seeking 10 billion kronor.
- Approximately 6.5 billion euros have been invested and about 60 percent of work is complete, while Stegra says its mill will emit 95 percent less CO2.
- Stegra CEO Henrik Henriksson denied the company was in crisis and said `We are proceeding with our project at full speed`, adding the agency decision strengthens Swedish and European competitiveness.
- Observers compare Stegra to Northvolt, former battery maker, amid scrutiny, and Henrik Henriksson noted a gap between granted funds and the 265 million euros EU-approved amount.
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Fresh giant contribution to the crisis-ridden climate giant. "Government support is necessary for the industry to succeed in the transition."
The steel company Stegra outside Boden is receiving 390 million kronor in government aid – in addition to the 1.3 billion already granted. Now the crisis-ridden steel company hopes that it will send positive signals to eager lenders and that they will receive more money from the state. – We hope that there are openings for dialogue on solutions for the remaining 1.4 billion kronor, says Stegra's press manager Karin Hallstan.
·Stockholm, Sweden
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Total News Sources13
Leaning Left4Leaning Right3Center3Last UpdatedBias Distribution40% Left
Bias Distribution
- 40% of the sources lean Left
40% Left
L 40%
C 30%
R 30%
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