Steel Mills
SSAB Looks to Recapture Global Position, Increase US Capacity
Written by Sandy Williams
October 2, 2014
SSAB, following its successful merger with Finnish steelmaker Rautaruukki, expects to reduce its annual cost base by SEK 1.4 billion ($194.7 million) over a three year period. In addition to cost synergies, SSAB expects to free up cash flow in the amount of SEK 500 million ($69.5 million)—half of it during 2015. The savings may lead to an increase in steel capacity in the USA.
“Looking ahead, there are many possibilities to continue work on developing the new company. This includes increasing the presence in the emerging markets, expanding value-added end-user services and aftermarket operations and increasing capacity in the USA,” said a statement in SSAB’s announcement of Capital Market Day.
The new organization is now divided into five divisions: SSAB Special Steels, SSAB Europe, SSAB Americas, Tibnor and Ruukki Construction.
“We have every possibility to recapture our position as one of the most profitable steel companies compared to relevant peers,” says SSAB’s President and CEO Martin Lindqvist. “We enjoy an unrivalled global position within high-strength steels, a segment where there is good future growth potential. We are market leader in heavy plate in North America, which is an attractive growing market, and we have a clear plan to increase profitability in our operations in Europe. Our recent combination with Ruukki will enable us to reduce the cost base structurally in Europe with SEK 1.4 billion. Furthermore, the new SSAB will have better capabilities to grow globally within high-strength steel, and to strengthen its offering on the home markets.”
Sandy Williams
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