Arctial completed its Pre-Feasibility Study for the development of low-carbon primary aluminum production in Kokkola-Kruunupyy, Finland. Based on the study results, the project partners — including Rio Tinto, Mitsubishi Corporation, Fortum, ABB, Vargas, Tesi, and Siemens Financial Services — have decided to proceed with more detailed technical, commercial and financial planning.
“Completing the Pre-Feasibility Study is an important milestone, but significant further work is still required within key areas such as construction, energy and environment before a final investment decision can potentially be made,” said Torbjörn Sternsjö, CEO of Arctial. “We are now progressing the work as planned and look forward to continuing the collaboration with our stakeholders to jointly contribute to the success of the project.”
Europe remains a significant net importer of primary aluminum, while demand for low-carbon aluminum continues to grow rapidly, driven by the energy transition, ambitious decarbonization targets and the increasing focus on lightweight materials. In a changing geopolitical environment, strengthening resilient and secure industrial value chains within Europe is becoming increasingly important for both industrial competitiveness and supply security.
According to the assessment, completed by Ramboll Finland Oy, the planned low carbon primary aluminium smelter and rolling mill would provide substantial positive contributions to employment, turnover, and tax revenues in Finland during both the construction and operational phases of the project. Beyond the direct economic effects, the broader benefits of the project include providing flexibility to the Finnish power grid, enabling new renewable energy investments, and building a new industrial cluster in Finland.
According to the assessment, the construction phase would generate cumulatively nearly 30,000 person-years of employment. During operation, which is planned for 30+ years, the integrated facility would directly employ around 1,200 person-years annually, with total employment effects including indirect impacts estimated at around 8,500 person-years per year.
The total investment is approximately €4.7 billion, subject to changes as plans are detailed further. Once operational, the investment is expected to deliver a total impact of 0.7% on Finnish GDP alongside direct tax impacts of €225 million and total tax-impacts of over €600 million per year.
“Arctial is at the forefront of Europe’s re-industrialization,” noted Pekka Vauramo, chairman of the Arctial board. “The project has the potential to create a significant number of jobs in the Kokkola-Kruunupyy region and contribute to economic growth in Finland more broadly.”
Arctial continues to work towards a final investment decision regarding the manufacturing facility. The company submitted an Environmental Impact Assessment in May 2026. As part of the process, public hearings in Kokkola-Kruunupyy will be held during the summer 2026.