Umeå municipality in the fight for a steel establishment

When the company Kaunas Metal is looking for a location in northern Sweden, it is to build an industrial plant for recycling steel as well as green large-scale production of reinforcement for the construction industry. Now the choice of where the facility will be built is between two municipalities, one of them is Umeå.

"Of course, we are very pleased that Kaunas Metal is turning its attention to Umeå as a possible location for its operations. Umeå is experiencing strong growth and because we have good conditions in terms of electricity supply, but also logistics by rail, road, air and an expanded modern port, Kaunas Metal is a very interesting candidate for establishment. The fact that the company, with its planned facility, is at the absolute forefront when it comes to the green transition, is very positive”, says Hans Lindberg (S), Mayor, Umeå Municipality.

Kaunas Metal plans to develop a factory area of approximately 160 000 square meters where recycled steel will be processed. The steel will be melted down and then transformed into reinforcement bars that can be used in various construction projects. The production will be large-scale, with an estimated annual production volume of 300 000 tons. The facility is expected to require approximately 300 employees once it is completed.

In Umeå municipality, there is already prepared industrial land available to accommodate an establishment of this size in the Klockarbäcken industrial area. However, the current detailed plan needs to be supplemented. Additionally, the municipal company Umeå Energi needs to contribute a power reinforcement of 60 megawatts to the area.

To manage the often substantial wastewater generated by industrial facilities, a system will be implemented where the wastewater circulates. Together with Umeå Energi the company is exploring the possibility of using waste heat from the factory for the district heating system in Umeå, which would also provide an environmental benefit.

“At the moment two municipalities in Sweden are very interesting options for us. There are great opportunities in both locations in terms of infrastructure, labour, and environmental requirements. We are therefore signing a so-called Letter of intent with both municipalities while we carry out a deeper investigation and analysis of the conditions before we decide where we want to finally establish the new plant”, says Robertas Buckus, CEO at Kaunas Metal.

Anders Ågren (M), Deputy Mayor in Umeå Municipality is very positive about a future establishment.

“It is very gratifying that more industries are turning their eyes to northern Sweden and Umeå. In Umeå, we are prepared in terms of industrial land and have other prerequisites required to receive new establishments. The fact that Kaunas Metal is making a change towards a more sustainable and energy-efficient manufacturing process is also completely in line with the strong environmental profile we have in Umeå municipality”, says Anders Ågren.

More information:
Hans Lindberg (S)
Mayor
Umeå Municipality
+46 70 589 01 66
hans.lindberg@umea.se

Anders Ågren (M)
Deputy Mayor
Umeå Municipality
+46 70 341 67 64
anders.agren@umea.se

Vaidas Repečka
CFO
Kaunas Metal
+370 686 46800
vaidas.repecka@kaunasmetal.lt