Global megatrends affecting SSAB

Climate change and resource scarcity

Description

  • Increasing likelihood of extreme weather events, e.g. hurricanes, wildfires, and flooding
  • Increasing consumption of world’s natural resources
  • Global greenhouse gas emissions need to be radically reduced in order to limit climate warming and meet the targets set in the Paris Agreement

Impacts on steel industry dynamics

  • Extreme weather events affecting steel operations , e.g. hurricanes more common
  • Increasing 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)

SSAB's response

  • Securing action plans for mitigating extreme weather events at all major sites potentially impacted
  • Helping customers to innovate their products and reducing their CO2 footprint through upgrading to high-strength steel
  • Goal is to offer fossil-free steel to the market in 2026 and become fossil-free throughout our entire operation by 2045

Population growth and urbanization

Description

  • Growing global population
  • Rapid urbanization primarily taking place in developing countries
  • Urban areas need to be continuously developed to manage the increasing complexity

Impacts on steel industry dynamics

  • Increased demand for steel in construction, infrastructure and energy sector
  • Increased demand for sustainable and energy-efficient buildings

SSAB's response

  • Developing new products and offerings to meet future challenges
  • Offering broad spectrum of products to be used in construction and infrastructure, as well as in construction machinery and renewable energy plants 

Digitalization

Description

  • New technologies available at affordable cost
  • Digitalization impacting the business model for most companies

Impacts on steel industry dynamics

  • More efficient operating practices available
  • Digital services adding more transparency in the value chain
  • E-commerce and trade platforms impacting demand-supply dynamics

SSAB's response

  • 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
  • New 3D-printing facility planned in Oxelösund

Changing geopolitical landscape

Description

  • Increasing protectionism, e.g., trade protection measures
  • Increased steel demand in developing economies

Impacts on steel industry dynamics

  • Higher importance of regional markets
  • Restrictions on trade and other cross-border flows

SSAB's response

  • 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
  • Improve production capabilities, so that each site can cover a broader product range