Stegra swaps CEO as costs spiral

A new leader and a growing bill. Stegra has replaced its CEO and revealed that completing its green steel plant in northern Sweden will require billions in additional capital.

The green steel project is burning through cash faster than planned. Now Stegra has brought in former Saab CEO Håkan Buskhe to steady the ship, effective 1 November. Outgoing chief executive Henrik Henriksson transitions to an advisory role.

“Håkan has extensive experience of leading large industrial operations through transformation. That is the capability the company needs right now,” says chairman Leif Johansson.

The bill keeps growing

A review commissioned by Stegra’s new owners has laid bare the scale of the challenge. Completing the green steel plant in Boden will cost “substantially” more than the company projected just months ago. No specific number has been given.

The shortfall comes despite a major capital injection in June, when Stegra raised approximately SEK 15 billion in fresh investment. Lenders also freed up around SEK 16 billion in previously untapped credit lines.

“The funding requirement is larger than we had hoped. But we have a solid plan to complete the project and have identified greater opportunities for outsourcing and partnerships than we previously believed,” says Johansson.

Next steps

The company is now in talks with its biggest shareholders to bridge the gap. Early signals are encouraging — owners have expressed a willingness to contribute, Stegra says. More details will follow once negotiations wrap up.

• More reading: Stegra raises €860M as steel plant costs hit €6B