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SSAB Americas
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.

 

Fast facts

Number of employees: Approximately 1,250
Sales in 2018: SEK 16,878 million
Share of SSAB Group's total sales: 22%
Share of SSAB Group's total EBITDA: 27%
Head of SSAB Americas: Charles Schmitt (1959), EVP
Steel shipments 2018: 2.0 million tonnes

 

Market position

SSAB is the largest producer and supplier of heavy plate in North America, with a market share of approximately 28% in 2018. SSAB maintains a strong market position in the energy and heavy transport customer segments. The US accounts for about 85% of sales, Canada 10% and Latin America 5%. 


Market drivers and trends

The North American plate market improved in 2018, mainly driven by increased demand and reduced imports. Total demand recovered from relatively low levels in 2016-2017, and therefore has the potential for continued improvement over the coming years. There is a significant need to reinvest in infrastructure in North America. This means several end-user segments, such as heavy fabrication and construction equipment, are expected to improve. Also, demand from wind energy is expected to remain positive, and the outlook for investment in line pipe projects going forward is also favorable.

 

Strengths

  • SSAB Americas boasts a strong North American production base with industry-best quality and a leading cost position
  • SSAB Americas operates two modern steel production facilities utilizing electric arc furnaces (EAF), which use recycled scrap metal as raw material
  • SSAB Americas maintains close partnerships with customers to develop unique customized products and solutions
  • SSAB Americas is strongly committed to the environment as evidenced by numerous recycling projects, a sustainable production process and a multitude of industry awards
     

Strategy

SSAB Americas’ goal is to maintain the leading position and increase market share to 30% over time in the heavy plate market. SSAB Americas concentrates its efforts on five key areas of focus:

  • Leading the industry in safety
  • Maintaining a leading home market position
  • Delivering a superior customer experience
  • Keeping costs low, with highly flexible operations
  • Diversifying its market presence

To achieve its strategy, capacity will be gradually expanded by removing bottlenecks to capture market growth and through new investments in current facilities. 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.

 

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. Key customer segments include energy, heavy transport, construction, infrastructure and construction equipment. 


Production

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 (EAF) 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.

SSAB’s modern steel mill in Alabama 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, Ontario (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.

SSAB Americas operates with the least possible impact on the environment. To produce SSAB Americas’ steel, the company uses recovered scrap metal – more than 94% recycled materials. This is material that has been diverted from landfills, everything from discarded appliances to old car parts. SSAB Americas uses recovered scrap tires as a raw material substitute for carbon in the production process. The organization recycles more than 400,000 tires a year, more than 6 million scrap tires to date. SSAB Americas utilizes renewable electrical energy in its manufacturing process, particularly wind energy bought through a certified program. SSAB Americas’ production process results in 63% fewer CO2 emissions compared to the 2016 US steel industry average. 

SSAB Americas has also been committed to reducing energy consumption, recycling both hazardous and non-hazardous waste, as well as recycling water for conservation. SSAB Americas was the first electric arc furnace steel producer in North America to successfully certify all of its Environmental Management Systems to the ISO 14001 standard. Funding is dedicated annually for ISO 14001 Continuous Improvement projects. 


Products

SSAB Americas produces heavy plate and coils. SSAB Americas’ steel is 100% recyclable and is made from 94% recycled materials. The durability and high strength of plate and coil produced by SSAB Americas means it lasts a long time, adding years to the lifecycle of products made using SSAB Americas’ steel and reducing customers’ carbon footprint. This long-lasting steel is used for applications such as transportation, where end users can enjoy reduced fuel consumption, and in the energy sector, contributing to the transition to, more renewable energy resources like wind power.

In 2016, SSAB Americas launched EcoSmart, an innovative customer awareness program designed to showcase SSAB’s commitment to sustainability. Nearly 50 customers have been onboarded to the program since its inception. Customers participating in the program receive products and documentation marked with the EcoSmart label, and confidence that SSAB is an environmentally responsible supplier.

 

Competitors

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