Boliden Odda Secures 1 Billion NOK from DNB and Eksfin for Zinc Production in Ullensvang

Boliden Odda is investing nearly 11 billion NOK to expand zinc production in Ullensvang municipality in Vestland. Loan financing of 1 billion NOK has been arranged by DNB, with the bank and Eksfin lending 250 million NOK and 750 million NOK respectively.

The mining and smelting conglomerate Boliden AB is the third-largest zinc producer in the world, and its Norwegian branch, Boliden Odda, currently employs 400 people. The expansion of the facility, including a new electrolysis hall, foundry, and the world’s largest roasting plant, will create approximately 50 additional jobs and represents a significant investment in the industry at Odda.

Zinc Plays a Vital Role in the Transition

Zinc is primarily used for galvanizing (rust protection) of metal structures. Offshore wind turbines and solar parks require large amounts of zinc, making the mineral crucial for the development of global green industries. After the expansion, Boliden Odda will supply nearly 3 percent of the world’s zinc production.

DNB and Eksfin provide important, long-term financing to one of Norway’s largest export companies. The financing supports the implementation of a 950 million euro investment for the company, for Norway, and for the green transition. Good collaboration between private and public financing makes Norway an attractive destination for foreign investments, states Tone Lunde Bakker, CEO of Eksfin.

Increasing Production and Reducing Emissions

Boliden Odda already produces high-quality zinc, and this investment will increase annual zinc production by 75 percent, from 200,000 to 350,000 tons. The operations at Boliden Odda are already world-leading in terms of climate performance, and this capacity increase will further improve this standing.

“It is important for DNB to assist our Nordic major customers with internationally competitive financing. We are pleased to contribute to the company’s growth and international success in collaboration with Eksfin,” says Trine Loe, division director for Future & Tech at DNB.