Tibnor’s President: Mikael Nyquist
Tibnor is Sweden’s leading steel distributor and constitutes an important sales channel for SSAB’s steel operations, particularly in the Swedish market. The company is owned by SSAB (85 percent) and Outokumpu (15 percent). Tibnor has a leading position in the Nordic countries and also has subsidiaries in Poland and Latvia.
Tibnor enjoys a leading position within steel and non-ferrous metal trading in the Nordic region. The most important customer segments comprise companies within the automotive, engineering, construction, and processing industries. A significant portion of Tibnor’s customers within the automotive and engineering industries are suppliers to the Swedish export industry.
Steel is supplied to the Swedish market by steel distributors or directly from Swedish and foreign steel producers. Other players include various Steel Service Centers and companies operating within a limited product area. The largest competitors among distribution companies in the Nordic region are BE Group and Rautaruukki, as well as a number of companies independently owned or owned by foreign producers, with a narrow product focus.
Tibnor’s traditional core business lies within the areas of ordinary steels and stainless steels, providing a complete range of strip products, plate, engineering steels and tubes. In addition, business operations include the sale of non-ferrous metals and construction-related steel products. Tibnor’s foreign subsidiaries supply their customers with selections from the product range, depending on market conditions.
Tibnor offers a wide range of services, supplementing steel and non-ferrous products. As a consequence of customer demand for tailor-made logistics solutions, steel and non-ferrous metal products are nowadays being delivered pre-treated for immediate use in the customer’s production. Tibnor possesses resources for processing of materials, such as slitting and cutting to length of strip steel. Also, Tibnor has its own production centers for processing of other materials in the form of cutting in lengths, shot blasting, primer coating, figure cutting, etc. In addition, Tibnor offers production resources through a network of partners within various areas of expertise.
In combination with sales, warehouse and distribution functions that are cost-efficient and strong in terms of resources, Tibnor has the ability to serve as an important partner for customers in all supplies of steel and non-ferrous products. For Tibnor, the objective is to be used as the first stage in a customer’s own production.
Within the non-ferrous metals area, specialization has taken place toward trading in non-ferrous metals for industrial use. As a distributor of aluminum, copper and brass, Tibnor is one of the largest players within the non-ferrous metals area in Sweden, Finland and Denmark.
Tibnor also is one of Sweden’s leading suppliers of reinforcement products, with major construction companies in the country constituting its most important customer group. With two plants for the manufacture of insertion-ready rebar products, the company also is able to provide tailor-made reinforcement solutions, in addition to standard materials. Tibnor also is one of Sweden’s leading suppliers of sheet piling, which is used in the laying of foundations.
Tibnor has ongoing investments to develop its operations as well as ensure quality and productivity. In 2010, the Steel Service Center operations in Gothenburg and Copenhagen were closed and relocated to a new facility in Gothenburg. As a consequence of the closure of the warehouse in Malmö, the central storage facilities in Köping and Eskilstuna have been adapted to handle larger volumes. These measures were taken in order to enhance efficiency in operations and increase the availability of materials to customers. In 2010, new sawing equipment for processing of engineering steels were installed at the automatic sawing centre in Eskilstuna. A new drilling and cutting line for long products, primarily beams and tubular sections, also was brought into commission, further expanding Tibnor’s range of production services.
Market
During the spring of 2010, demand increased from the lower levels of 2009, primarily from customers within the automotive industry and their subcontractors. This increase was driven by increased activity in the industry and a restocking of inventory levels. Prices increased during the spring and summer, particularly for flat products. Shipments declined somewhat during the fall and price levels also declined during that period. All in all, shipments increased by 30 percent in 2010.
In the spring of 2010, lead times from the steel mills were longer than normal and, in some cases, suppliers experienced a shortage of materials. After the summer, lead times reverted back to normal.
Norsk Stål and Norsk Stål Tynnplater
Tibnor owns 50 percent of the shares in Norsk Stål and Norsk Stål Tynnplater. The remaining 50 percent stakes are owned by Tata Steel Europe.
Norsk Stål is Norway’s largest steel distributor. Sales for the year decreased to SEK 2,053 (2,170) million, and Tibnor’s share of earnings increased to SEK 28 (-4) million. There were 263 (290) employees.
Norsk Stål Tynnplater is Norway’s largest Steel Service Center. Sales for the year increased to SEK 571 (487) million and Tibnor’s share of earnings increased to SEK 9 (-8) million. There were 46 (45) employees.
Profit
The Tibnor Group’s sales in 2010 were SEK 6,696 (5,286) million, up 27 percent on last year. Profit before depreciation was SEK 470 (22) million. Operating profit was SEK 421 (-38) million. The significant improvement compared with 2009 was due primarily to increased volumes and higher gross margins. The result for 2010 includes a capital gain of SEK 28 million on a property sale.
| Sales by product, SEK millions | 2010 | 2009 | Change, % |
|---|---|---|---|
| Strip and plate | 2,787 | 2,013 | 38 |
| Long products | 1,218 | 1,107 | 10 |
| Engineering steels | 986 | 713 | 38 |
| Non-ferrous metals | 723 | 647 | 12 |
| Stainless steel | 649 | 527 | 23 |
| Reinforcement products | 319 | 266 | 20 |
| Other | 14 | 13 | 8 |
| Total | 6,696 | 5,286 | 27 |
