Boden's new municipal councilor Béatrice Öman assures there is no reason for concern about Stegra despite the company's financial crisis. The municipality has invested billions to prepare for the establishment, but Öman emphasizes the importance of growth. Criticism targets an agreement giving Stegra employees special benefits.
Stegra, formerly known as H2 Green Steel, is a Boden-based project for fossil-free steel production now facing an acute economic crisis according to the Financial Times. The factory construction has been delayed and more expensive than expected, and the company seeks ten billion kronor in new funding. Billionaire Harald Mix is leaving as board chairman, creating worry in the area, reports SVT.
Béatrice Öman (S) formally took office as municipal council chair on October 14, but stepped in practically last spring after Claes Nordmark's conviction for sexual assault. She says: "Based on what is known today, I don't think there is any reason for concern. And the company will eventually provide updates on their progress."
The municipality's debt has risen from 80 million to 1.6 billion kronor over eight years, mainly for investments in infrastructure and housing ahead of Stegra's establishment. Öman avoids speculating on risks but explains: "It is clearly a major undertaking. The alternative cost would have been not investing in growth and influx, and I don't know what Boden would look like in 20 years. So it is an effort." She adds: "We want to grow. No, it is not optional. We need to grow."
The crisis stirs emotions among Boden residents, and Öman hopes for an open meeting from Stegra. Owners include Harald Mix's companies, Altor, Kinnevik, and AMF. Separate news concerns an agreement where the municipality promises housing and childcare to Stegra employees in exchange for 7.5 million kronor from the company, which professor Olle Lundin calls "a breach of the equal treatment principle." The municipality defends the deal.