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How workers are experiencing efforts to decarbonise the steel industry in Sweden

A photo of signs for places in Hofors. Photo.
Hofors is an old industrial town in Bergslagen where scrap-based steel is produced by Japanese-owned company Ovako. Ovako has launched a new hydrogen plant to fuel its rolling mills.

A novel research report maps how workers are experiencing efforts to decarbonise the steel industry in Sweden. It identifies how people’s expectation of change is marked by previous transitions, that blue- and white-collar workers view transitions differently, and how work is a source of great pride to people.

"Our aim was to explore the societal impacts of change in different places. Through interviews, field work and case studies, we wanted to drill into what people expect of the future in relation to their work in the steel industry," says Bregje van Veelen, associate senior lecturer and docent at Lund University Centre for Sustainability Studies, LUCSUS.

Steel making has a long history in Sweden, and while employment numbers in the industry have declined in the last 50 years, in the communities where the industry is still located, it remains an important provider of local jobs. Most research on how decarbonisation impacts workers and communities focuses on industries that are expected to disappear, like the coal industry. 

"The steel industry is interesting, as the impacts of decarbonisation are more diverse: there is potential for re-industrialisation and growth in some places but also de-industrialisation or decline in others."

Met with people in four locations in Sweden 

Bregje van Veelen and her colleagues, including former LUCSUS research assistant Sanne Malmberg, conducted fieldwork in four locations, chosen based on their different roles in the steel supply chain and differences in anticipated impacts connected to the transition. They are: Luleå and Boden, where new steel mills and hydrogen facilities are being planned and built; the industrial town Hofors, where a new hydrogen plant has been launched to fuel rolling mills; Blötberget, an industrial town where plans are ongoing to reopen an iron mine, and Oxelösund which is home to an integrated steelworks and rolling mill that is being converted to fossil free steel production.

Different expectations of change 

They found that workers have different expectations of the changes to come, related to what they find meaningful about their work today. Workers took great pride in their work, especially in the skillsets they have acquired throughout their career. For blue collar workers, this sense of pride was closely connected to the products they made. For example, one worker said that each time he saw Öresundsbron (connecting Sweden and Denmark), he would think: that is our steel that built the bridge! White collar workers, in contrast, were more proud of the company’s achievements as opposed to the products it produced. There were also differences in how these groups perceived change: blue collar workers tended to express a worry that their skillsets might no longer be needed, and that they might lose their jobs, whereas white collar workers tended to be more positive towards transition and the changes it brought. In particular, many workers highlighted how their company had started to generate media attention and interest, something they saw as beneficial.

Previous experiences influence views of the future 

Another finding was that many workers are influenced by previous industrial change in their community: something which affected if they had a positive or more negative view of the future. For example, some workers cited the increase in automated and changed processes starting in the 1970’s. While these processes had made work less dangerous, there was also a sense that enjoyment in work had decreased. Some workers also mourned the change in community spirit, yet they had a hard time putting into words exactly what this spirit was, and did not see it coming back. Many people also had very modest expectations for what the transition might bring: that the number of pupils in the local school might stop declining, or the local shop might re-open again if the industry grows. 

According to Bregje Van Veelen, these findings highlight a number of key take-home messages for the state, companies and municipalities working with large industrial transition projects, such as the steel industry for example. 

"For transitions to work, one needs to also address societal impacts. It is not just about losing or gaining a job, but about maintaining pride in a profession, an identity and encouraging workers’ hopes and dreams. If companies recognise and value the contributions of workers, it might also be easier to integrate their skills into new processes and working routines for example." 

"It is also important that these changes benefit the community at large; can companies coming into a town, also invest in the local sports team or do other activities? This can go a long way in reviving communities that have experienced long periods of decline."

Bregje van Veelen further notes how Sweden stands out in that many companies involved in the decarbonisation of the steel industry are fully or partially state owned, in contrast to England for example, where privately owned companies are reluctant to make long-term investments. Sweden has also adopted stringent climate targets including an ambition to be completely fossil-free by 2045, putting a greater onus on transition projects to be successful – especially as the steel industry is a high emitting sector which also uses fossil fuels in many of its processes.

"A lot is at stake for the Swedish state in making transitions work. Applying a societal and historical lens to the implementation of large-scale industrial decarbonisation projects can help make them of value to the whole community; with opportunity for workers to develop and reskill," says Bregje Van Veelen.

Read the report

Worker experiences of green steel transitions (available at lu.se). It is published by Lund University.

Further reading

Green steel transitions: Impacts on people and places (available at lu.se) It is published by Lund University.

 

The four locations in Sweden

  • Luleå and Boden (Norrbotten). Lulea has produced steel since 1906, and is now the site for a pilot facility of the HYBRIT fossil-free steel project. In Boden, Stegra is building a new steel mill and hydrogen production facility.
  • Hofors, an old industrial town in Bergslagen where scrap-based steel is produced by Japanese-owned Ovako. Ovako has launched a new hydrogen plant to fuel its rolling mills.
  • Blötberget, a community in the Bergslagen area, where Nordic Iron Ore has plans to re-open a mine which closed in the late 1970s. It aims to supply iron for hydrogen-based steel production.
  • Oxelösund is home to an integrated steelworks and rolling mill. Its owners, Swedish company SSAB are building an Electric Arc Furnace, replacing a coking plant and two blast furnaces.
Bregje van Veelen. Photo

Bregje Van Veelen

Bregje van Veelen is an Associate Senior Lecturer (Assistant Professor) and Docent at the Lund University Centre for Sustainability Studies (LUCSUS). She researches how low-carbon transition pathways emerge and evolve, and how they can be implemented in a way that is democratic and fair. She holds a PhD in Human Geography from the University of Edinburgh.

Read more about Bregje Van Veelen