The first ironworks in Björneborg were known in 1656 already. More extensive development started in the mid-19th century. Until 1872 a pair of blast furnaces, bessemer steel plant, cast iron foundry and fourteen steam hammers were in operation.

The Nordenfeldt family run the plant until 1898, when Björneborgs Jernverks AB were founded.

The restructuring of Swedish industry in the 1980s hit Björneborg as well. The plant was acquired by Avesta AB, which soon after sold the plant to Boxholms AB.

In 1993 the Norwegian company Scana Steel took over the production. In 2018 the plant became independent and continues the rich tradition as Björneborg Steel AB.