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SSAB Europe

SSAB Europe

Leading Nordic-based steel producer of high-quality strip, plate and tube products

 

SSAB Europe is a leading producer of high-quality steel strip, plate and tube products. SSAB Europe’s processing centers tailor products to customer needs. A focus on working closely with customers and understanding their needs, together with our know-how of high-strength steel production and use, combined with the value-added services our customers need, makes SSAB Europe stand out from other steelmakers.

SSAB Europe’s focus is on the home market in the Nordic region, as well as on selective growth areas in continental Europe and internationally. SSAB Europe’s main production sites are located in Raahe and Hämeenlinna (Finland), and in Luleå and Borlänge (Sweden). Production is based on integrated blast furnace processes. SSAB Europe’s steel mills have an annual production capacity of 4.9 million tonnes.

Other production sites include the color-coating lines in Finspång (Sweden) and Kankaanpää (Finland). The division also has tube production in Hämeenlinna, Lappohja, Oulainen, Pulkkila and Toijala (Finland) and in Virsbo (Sweden), as well as processing sites in the Netherlands, Norway, Russia, Poland, Sweden and the UK.

 

Fast facts

Number of employees: Approximately 6,900
Sales in 2016: SEK 25,831 million
Share of SSAB Group's total sales: 39%
Share of SSAB Group's total EBITDA: 48%
Head of SSAB Europe: Olavi Huhtala, EVP
Steel shipments 2016: 3.7 million tonnes

Customers and end-users

SSAB Europe’s broad product portfolio allows the division to serve customers in diverse segments and in a wide range of applications.

SSAB Europe sells products both directly to end customers and to service centers and wholesalers. Some of the products for the Nordic and Baltic markets are also supplied via Tibnor.

 
SSAB Europe’s main customer segments:
  • Construction & infrastructure
  • Automotive
  • Industrial applications
  • Heavy transportation
  • Energy
  • Construction machinery
  • Service centers
 
SSAB Europe supplies different steel grades to major OEMs in the heavy and commercial vehicle sector. Like manufacturers of passenger vehicles, these manufacturers are seeking the benefits of lightweighting and more efficient fuel consumption. The division sells its products also to major agricultural machinery makers. Heavy plates are used extensively in the Nordic markets and within Europe in the energy sectors, while color-coated materials are used primarily by manufacturers of steel roofing and rainwater systems, particularly in the Nordic and Eastern European markets.

 

Products and services

SSAB Europe has a broad product offering through internationally well-known product brands. Yield strength classes of hot-rolled products reach up to 700 MPa. (Steel grades exceeding this strength level in hot-rolled products come under SSAB Special Steels’ product offering.) Cold-rolled and galvanized products are available in tensile strengths ranging from 200 to 1,700 MPa. SSAB Europe’s product offering also includes customized products for diverse uses from mild deep drawing steel to ultra-high-strength steel for dual applications. In addition, SSAB Europe can provide leading color-coated products designed for specific needs based on many different coating systems and various specially developed base steel grades.
 
The full range of products includes the following:
  • Hot-rolled plate products
  • Hot-rolled strip products
  • Cold-rolled strip products
  • Metal-coated strip products
  • Color-coated strip products
  • Tubes and sections
  • Infra products
 

SSAB Europe’s setup enables high availability, short delivery times, advanced logistics services with high delivery accuracy and a high degree of flexibility to meet customer needs, particularly in the Nordic region. Customers can also obtain steels in the formats that best meet their needs. SSAB Europe’s service offering also includes technical advice and workshop support, training and more.
 

General market conditions and demand

Steel demand in Europe has been at historically weak levels during the past few years, but modest growth is expected in the years to come. The European economy is generally reasonably strong, but uncertainty is high and there are several risks. There are large regional differences and attractive growth potential for SSAB Europe’s products and services in a number of geographical areas and segments.  Development within the automotive sector in particular presents interesting growth potential.

The European steel industry continues to suffer from excess capacity and also imports from producers in other parts of the world. The European steel industry is characterized generally by tough competition, with a margin squeeze when comparing raw material prices with steel prices on the market. However, the squeeze on prices varies from one product to the next and is also impacted at times by anti-dumping measures. 

 

Market areas

  • In the Nordic region, SSAB Europe is a market leader with a complete portfolio of high-quality steel products
  • SSAB Europe has a leading position within selected Advanced High-Strength Steel (AHSS) applications for the automotive industry
  • In Russia, a market presence has been built up in recent years
  • In color-coated products, SSAB Europe has leading products and a strong product brand - GreenCoat
  • SSAB Europe has an extensive portfolio of high-quality tube products developed by the company's own product development team
  • Nordic countries account for about 50% of sales, rest of Europe about 40% and rest of the world about 10%

  Historically strong in Western Europe, SSAB Europe is now seeing increasing opportunities to develop sales activities in Eastern Europe.

SSAB Europe’s many important market segments indicate the extent of the company’s customer offering: the automotive industry, heavy transportation, lifting, yellow goods/construction machinery, offshore, agriculture, the construction industry and energy. 

SSAB Europe is the only steel tube manufacturer in the Nordic countries with an extensive selection of tube products and sections to meet the needs of the construction, automotive and manufacturing industries.

 

Strategy and priorities

The Nordic region home market is a core part of SSAB Europe’s strategy and the ambition is to continue developing the market, including the value-added offering, while maintaining our position as the most reliable supplier and customer’s first choice.

Other important strategic focus areas are to continue growing the Advanced High-Strength Steel (AHSS) business for the automotive industry globally, focusing on selected areas of application, and to grow the more unique steel products in a number of different segments.

The merger of SSAB and Rautaruukki has created a more competitive and flexible production system by successfully leveraging major synergies and achieving better utilization of production assets. The combination has also enabled an optimized product portfolio based on the best products from both companies.

Continued improvements in efficiency and productivity are also an important part of SSAB Europe’s strategy and are primarily being driven by continuous improvements across the organization.
Throughout Europe, the focus is on supplying value-added material to customers in all markets, pursuing a strategy of selective growth rather than commodity sales.

 
Strategic priorities:
  • Focus on working safely throughout the division
  • Secure and develop the Nordic home market
  • Grow advanced high-strength steel in the automotive industry
  • Grow more unique products in selected categories and markets
  • Realize improvements in efficiency and productivity, together with improved quality and delivery accuracy through continuous improvements

 

 

Strengths

  • Market leader in the Nordic countries
  • Close collaboration with customers to create a superior customer experience
  • Broad product portfolio with unique and strong product brands
  • Strong, growing customer base in Europe
  • Leading technology and materials expertise
  • Flexible production capacity
  • Steel products tailored to customer-specific needs
  • Strong partner and distribution network

 

Competitors

SSAB Europe’s main competitors include ArcelorMittal, Dillinger, Salzgitter, ThyssenKrupp, Tata Steel Europe, US Steel and Voestalpine.