All agreed loans

Finland. Rautaruukki Corporation

Date of loan: 16 Jun 2010
Country: Finland
Customer: Rautaruukki Corporation
Amount in EUR: EUR 50 million
Maturity: 7 years
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 the Baltic Sea environment: 20%

Project

The 7-year-maturity loan totalling EUR 50 million is the second provided for the modernisation and reconstruction of the iron production and related environmental technology in the company's steelworks in Raahe, Finland. The renewal of the technology will help bring the manufacturing process up to date with the latest environmental and technical standards.

The previous loan of EUR 30 million was signed in 2009.

By the end of 2011, the company will switch over to using only iron pellets instead of a combination of fines and pellets as raw material in its steel production. 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 27 countries and employs 11,500 people.

Sustainability summary

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) and sulphur dioxide (SO2) particulates to the air; as well as reduction in suspended solids discharged into the Baltic Sea. 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.