Sustainable building and construction products and services in Europe
Number of employees: Approximately 1,800
Share or SSAB Group's total EBITDA: 7% (2019)
Sales in 2019: SEK 6,510 million
Head of Ruukki Construction: Sami Eronen (1971)
Share of SSAB Group's total sales: 8% (2019)
Ruukki Construction offers sustainable building products and services such as roofs, envelopes and frame structures. Core business segments are non-residential and residential construction. Ruukki Construction has operations in 10 countries and production units are in Finland, Poland, Sweden, Estonia, Lithuania and Ukraine. Ruukki’s customers are active in construction and real estate sectors.
Environmentally-aware construction has become normal practice. Alongside environmental awareness, customers’ requirements include the construction of high-quality, healthy buildings. Ruukki is responding to evolving requirements by offering customers the best products and solutions to promote sustainability. Examples of this include increasingly more energy-efficient panels and the Ruukki Life panel, which is mostly made from recycled material which cuts carbon dioxide emissions originating in production by as much as 20%.
Ruukki Construction has over the past years created a foundation to achieve profitable growth. Following completion of the divestment of the business unit in Russia at the end of 2018, an agreement to divest Ruukki Building Systems has been signed and the transaction is expected to close early 2020. In addition, Ruukki Construction withdrew from business operations in Romania and the United Kingdom, thereby increasing the focus on core market areas: the Nordics, Baltics and CEE. Acquisition of Finnish roof safety product and rainwater system manufacturer Piristeel Oy was made early 2019 to complement the roofing product portfolio.
Ruukki Construction will now develop the remaining core business units, Roofing and Building Envelopes, with SSAB as its main steel supplier. The focus will be on achieving organic growth via an already launched Commercial Excellence program. The program aims to boost the market and channel development within the current portfolio. The synergy potential arising from the acquisition of Piristeel was identified in all core markets and the focus is to fast track synergy realization. Additional complementary mergers & acquisitions will also be considered to strengthen the offering in prioritized segments/markets.
Core business segments:
Ruukki Construction’s customers operate in many activities in real estate and construction. The most important decision groups are:
Ruukki Construction has production units in Finland, Poland, Lithuania, Sweden, Estonia and Ukraine. Ruukki Construction’s major steel supplier is SSAB Europe. There are also external steel suppliers, mainly in CEE and Russia. Competitiveness is secured by market level pricing from all suppliers.
Steel-based building product suppliers Kingspan, Lindab, and locally Areco & many other smaller companies