SSAB to invest in using liquefied natural gas (LNG)

SSAB participates in Manga LNG Oy’s liquefied natural gas (LNG) terminal project
to be built in Tornio in the north of Finland. The terminal will serve industry,
mines and other gas users in the area. SSAB’s site in Raahe will also make use
of LNG.
At the Raahe steel mill, liquefied natural gas (LNG) will replace the use of
liquefied petroleum gas (LPG) in the walking beam furnace in the strip mill and
be used as a support fuel in the boiler of the new power plant. Use of LNG will
enable SSAB to replace the use of oil-based fuels and thus reduce particulate,
NOx, SOx and carbon dioxide emissions from their present levels.

Manga LNG Oy is a joint venture of Outokumpu Oyj, SSAB, Skangass and EPV Energia
Oy. The terminal will be supplied by Wärtsilä Oyj. SSAB has a 25% share in the
terminal project. SSAB will contribute with around EUR 7 million in equity in
the Tornio terminal and will invest around EUR 5 million in the Raahe terminal.

Reception, unloading and bunkering facilities for large LNG tankers, an LNG
vaporization facility and a 50,000 m³ storage tank will be built at the terminal
in Röyttä, Tornio. For gas deliveries, a pipeline will be built on the Röyttä
industrial site and a truck loading terminal for LNG trucks The LNG will be
transported by road or rail from Tornio to customer terminals and consumption
points in northern Finland and Sweden. As regards SSAB, the beneficiary will be
the Raahe site, which will receive deliveries of LNG by tanker truck. The
terminal in Tornio will be completed in early 2018.

In future, the terminal will also be able to supply LNG to ships.

Earlier this fall, SSAB switched over to using LNG in one of the reheating
furnaces in the hot strip mill in Borlänge, Sweden. Switching over to natural
gas is part of SSAB’s strategy to make the energy system more sustainable, more
cost efficient and to spread the risks by using several different types of fuel.

For more information, please contact:

Carl Orrling, Head of Technical Development, tel. +46 8 454 5759, carl.orrling @
ssab.com
SSAB is a Nordic and US-based steel company. SSAB offers value added products
and services developed in close cooperation with its customers to create a
stronger, lighter and more sustainable world. SSAB has employees in over 50
countries. SSAB has production facilities in Sweden, Finland and the US. SSAB is
listed on the NASDAQ OMX Nordic Exchange in Stockholm and has a secondary
listing on the NASDAQ OMX in Helsinki. www.ssab.com.