3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||20 Mar 2009|
|Amount in EUR:||EUR 30 million|
|NACE sector / loan type:||Manufacture of basic metals|
|Business area:||Industries and services|
This loan contributes to climate change mitigation: 30%
This loan has a positive effect on maritime environments: 20%
The 7-year-maturity loan totalling EUR 30 million has been provided for the modernisation and reconstruction of the iron production and related environmental technology in the company's steelworks in Raahe, western Finland. The renewal of the technology will help bring the manufacturing process up to date with the latest environmental and technical standards.
The company will switch over to using only iron pellets as raw material. The closure of the sintering operations at the steelworks, as part of the programme, will significantly reduce emissions to the air.
Rautaruukki supplies metal-based components, systems and integrated systems to the construction and engineering industries. The company has a wide selection of metal products and services. Rautaruukki has operations in 26 countries and employs 14,300 people.
Rautaruukki's investments in the iron production and related environmental technology at the Raahe steelworks and closing down its sintering operations will be carried out in accordance with the Bank's environmental policy and guidelines.
The main environmental benefits are: a substantial decrease in carbon dioxide (CO2), nitrous oxides (NOx), sulphur dioxide (SO2) and particulates to the air; as well as reduction in suspended solids discharged to sea water. Moreover, the investment will lead to a decrease in energy consumption. Thus, it is anticipated that the project will have several substantial positive environmental impacts.
The environmental part of the project is being allocated under both the CLEERE and BASE lending facilities.