Global megatrends affecting SSAB

Global megatrends affecting SSAB

Megatrend Description Impacts on steel industry dynamics SSAB’s response
Climate change and resource scarcity
  • Increasing consumption of world’s natural resources
  • To meet the goals set in the Paris Agreement, global greenhouse gas emissions need to be radically reduced in order to limit global warming
  • Increased demand for sustainable, recyclable material e.g. steel
  • Cost of carbon emissions
  • Optimization of available steel capacity to promote more resource and CO2 efficient products/processes (e.g. China closing down overcapacity and environmentally inefficient production)
  • Global leader of Advanced High-Strength Steels
  • Helping customers to innovate their products and reducing their CO2 footprint through upgrading to high-strength steel
  • Aiming to be fossil free by 2045, where research of new steelmaking technologies in the HYBRIT initiative is the key component
Population growth and urbanization
  • Aiming to be fossil free by 2045, where research of new steelmaking technologies in the HYBRIT initiative is the key component
  • 68% of the world’s population projected to live in urban areas by 2050
  • Rapid urbanization primarily taking place in developing countries
  • Urban areas need to be continuously developed to manage the increasing complexity
  • Increased demand for steel in construction, infrastructure and energy sector
  • Developing new products and offerings to meet challenges of the future
  • Offering broad spectrum of products to be used in construction and infrastructure, as well as in construction machinery, renewable energy plants
  • New technologies available at affordable cost
  • Digitalization impacting the business model for most companies
  • More efficient operating practices available
  • Digital services adding more transparency in the value chain
  • E-commerce and trade platforms impacting demand-supply dynamics
  • Using robotics, machine learning and advanced analytics to improve production stability and process efficiency
  • Renewing digital service portfolio to improve customer experience
  • Developing new digital tools such as SSAB SmartSteel to help customers realize the full potential of our steel
Changing geopolitical landscape
  • Increasing protectionism e.g. trade protection measures
  • Increased steel demand in developing economies
  • Higher importance of regional markets
  • Restrictions on trade and other cross-border flows
  • Securing leadership positions in our home markets with cost leadership and preferred supplier status
  • Taking an active stance for free and fair trade
  • Advancing SSAB’s position in emerging markets for high-strength steels
  • Developing the global production footprint to be better able to switch production between sites