STOCKHOLM--Swedish steel producer SSAB (SSAB-A.SK) said Thursday it is looking into an expansion of its smelting facility in Montpelier, Iowa, U.S, by up to 1.2 million metric tons above current capacity to support growing demand.

"SSAB Americas is constantly reviewing opportunities to continue to grow in the plate market throughout the Americas and to support the growing needs of our customers," said Jeff Moskaluk, chief commercial officer, SSAB Americas.

The expansion of 1.2 million tons represents roughly an additional 800,000 tons per year of finished product along with 400,000 tons of smelting capacity to be transferred as slab to SSAB's mobile facility for rolling and finishing.

SSAB said it has entered into an agreement with an engineering firm to undertake a study to identify the requirements related to expansion. The project would result in the Montpelier facility increasing its capacity to as much as 2.1 million finished tons per year.

Shares closed at SEK53.85 Wednesday.

Write to Christina Zander at christina.zander@wsj.com

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