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SSAB Americas

SSAB Americas

Market-leading North American producer of quality steel plate and coil

SSAB Americas is the largest producer and supplier of steel plate in North America, strongly positioned and highly recognized in the region for cost-efficiency and quality.

SSAB Americas’ modern steel mills are located in Mobile, Alabama and Montpelier, Iowa and have a combined annual production capacity of 2.4 million tonnes. Both mills utilize a scrap-based, electric arc furnace method to produce steel. The mills are strategically located to cover the industrial heartland in North America, with access to the strategic port systems, intercoastal waterways and major railways, which provide logistical advantages.

 

Fast facts

Number of employees: Approximately 1,200
Sales in 2017: SEK 12,727 million
Share of SSAB Group's total sales: 17%
Share of SSAB Group's total EBITDA: 10%
Head of SSAB Americas: Charles Schmitt (1959), EVP
Steel shipments 2017: 2.0 million tonnes

 

Strengths

  • Strong North American production base with an industry-leading quality and cost position 
  • Two modern steel production facilities utilizing electric arc furnaces (EAF), which use recycled scrap metal as raw material
  • Close partnership with customers to develop unique customized products and solutions
  • Strongly committed to the environment as evidenced by numerous recycling projects


Strategy

SSAB Americas’ goal is to maintain the leading position and increase the market share to 30% over time on the heavy plate market. The capacity will be gradually expanded by removing bottlenecks in current facilities to capture market growth. Further investment decisions will be made based on the assessments of long-term supply and demand, and the ability to maintain the leading cost position.

  • Safety focus throughout the division
  • Industry-leading customer service levels and e-commerce options
  • Low-cost leadership position, maintained through commitment to continuous improvement


Customers and end-users

SSAB Americas manufactures a wide range of quality steel products including advanced high-strength steels that are used in various industries. SSAB Americas sells products both directly to end customers and to steel service centers.

Main customer segments

  • Energy: Gas, oil, offshore structures, transmission towers, wind turbines and petro-chemical tanks 
  • Heavy transport: Railway transport, ships and offshore, agriculture, forestry and fishing 
  • Construction: Lifting, yellow goods and construction machinery 
  • Infrastructure: Water transmission, storage tanks and bridges
  • Mining: Earthmoving equipment 
  • Service centers: Plate and coil  
     

Products

  • Heavy plate
    • Plate coils
    • Heat treated plate
    • Normalized plate
  • Other products
    • Hot-rolled coil
    • Cold-rolled coil
    • Metal-coated products
    • Pre-painted products

In Iowa, SSAB has a modern, world-class research and development facility adjacent to the steel mill. It contains some of the most cutting-edge testing, simulation and metallographic equipment in the world. 

In Alabama, SSAB has a modern steel mill  that was founded in 2001. The mill includes two quenching and tempering (Q&T) lines with a total production capacity of more than 300,000 tonnes a year. Shipments of these products are accounted for in the SSAB Special Steels division. The newest Q&T line in Alabama is one of the world’s most advanced.

In addition to the two steel mills, SSAB Americas operates three cut-to-length facilities located in Houston, Texas; St. Paul, Minnesota; and Toronto (Canada). With the flexibility to handle both SSAB’s steel as well as steel from external suppliers, these locations process coils of various widths, gauges and grades to meet customer-specific requirements with an enhanced service model.

 


General market conditions and demand

The North American plate market saw a modest improvement during 2017, mainly driven by the energy segment. Total demand has been relatively low in 2016 and 2017, but there is potential for improvement over the coming years. There remains in North America a significant need to renovate infrastructure, meaning several end-user segments, like construction equipment and mining, are expected to improve.

 

Market areas and market share

  • SSAB is the largest producer and supplier of heavy plate in North America, with a market share of 28% in 2017 
  • SSAB maintains a strong market position in energy and heavy transport customer segments
  • US accounts for about 85% of sales, Canada 10% and Latin America 5% 



Competitors

SSAB Americas’ primary competitors are domestic steel producers, such as Nucor and ArcelorMittal, and imported products.