Tibnor

Leading supplier of steel, other metals and processing services in the Nordics

Fast facts

Tibnor distributes steel and other metals to the industry in the Nordics and Baltics, complemented by a wide range of value-adding processing and parts production services. Tibnor plays an important role in securing SSAB’s leadership in the Nordic home market.

Tibnor is committed to a successful and constantly evolving Nordics. Tibnor is a meeting place for Nordic manufacturers. As a modern distributor of steel and other metals, Tibnor’s role goes far beyond actual delivery.

Number of employees: Approximately 1,100

Share of SSAB Group´s total EBITDA: 3% (2019)

Sales in 2019: SEK 9,149 million

Head of Tibnor: Kimmo Väkiparta (1965), acting President

 

Share of SSAB Group's total sales: 12% (2019)

Market position

Tibnor’s strategy is to win market shares through the broadest product offering in the Nordics and to grow volumes in the parts business through a specialized network of processing units. In 2019, Tibnor acquired the steel distribution business of the Danish company Sanistål A/S, Denmark’s second largest steel distributor, in order to complete its Nordic footprint and establish the company as a clear market leader by having a position as #1 or #2 in all the Nordic countries. 

Market drivers

Distributors have an important role in the market and nearly 55% of all steel delivered in the Nordic region, around 4 million tonnes, is supplied through distributors. The manufacturing industry in the Nordic region is characterized by a high degree of exports, hence the status of the global economy is an important factor for demand.
Value-adding services and outsourcing non-core competencies to a professional, specialized processing partner are of increasing importance for industrial customers seeking to increase their overall profitability and competitiveness. 
Market position

Strengths

With its steel service center and distribution network in the Nordics and Baltics, Tibnor is able to serve its customers with high delivery accuracy and short lead-times. Tibnor’s extensive product range and specialized processing services combined with logistics expertise and modern customer service solutions form a strong customer offering.

Strategy

Tibnor’s strategy is to win market shares through the broadest product offering in the Nordics and to grow volumes in the parts business through a specialized network of processing units. In 2019, Tibnor acquired the steel distribution business of the Danish company Sanistål A/S, Denmark’s second largest steel distributor, in order to complete its Nordic footprint and establish the company as a clear market leader by having a position as #1 or #2 in all the Nordic countries. 

Working in close collaboration with strategic suppliers and key customers, Tibnor continues to develop a value-adding offering focusing on customer experience and leveraging digitalization and automation. Tibnor is aiming to be the digital leader in Nordic steel distribution, with the target to grow its business in digital channels to 50%. Efficiency initiatives in the strategic plan include structural improvements, productivity programs and the realization of cost synergies from the Sanistål acquisition. These measures will position Tibnor to leverage its market position and reach industry-leading profitability.

 

Strategic initiatives and targets

  • Implement cost savings measures 
  • Reach an EBITDA margin of more than 5% in 2022
  • Reach a ROCE of more than 15% in 2022


Tibnor’s role in SSAB’s portfolio

  • Strengthen home-market position by targeting small and medium-sized customers 
  • Increasing stability over the business cycle 
  • Support and market SSAB steel business’ premium and service offerings  
  • Develop the parts business and other processing to increase value added 
  • Offer superior customer experience (24h lead time and >95% delivery accuracy)
 
Customers and end users

Customers and end-users

Tibnor has approximately 10,000 customers in various industries in the Nordics and Baltics. Customers range from large OEMs to small and mid-size industrial companies who use steel and other metals in their manufacturing processes and/or end products.

Key segments are the following:

  • Subcontracting
  • Engineering
  • Automotive, including heavy commercial vehicles
  • Construction

Products and services

SSAB’s product range represents approximately 50% of Tibnor’s sales. Other suppliers’ products including engineering steel and long products (e.g. beams, merchant bars and hollow sections) represent approximately 33%. Stainless steel and non-ferrous metals, mainly aluminum and copper, account for approximately 17% of sales.

Tibnor is a logistics expert with a well-established distribution system that works with different logistics flows. Logistics solutions range from 24-hour stock deliveries to individual material flows. Tibnor also offers a variety of customer contact points and service solutions, for example e-services, EDI (electronic data interchange), Webshop or personal service.

Tibnor processes all product groups supplied to the market. Tibnor’s machinery and equipment in the steel service centers are specialized in different materials, which enables Tibnor to meet very complex customer needs. Tibnor has three processing units in Finland, five in Sweden, three in Norway, as well as units in Denmark and Lithuania. 

Competitors

BE Group, Stena Stål, Norsk Stål, Lemvigh Muller and Kontino, as well as a number of national local companies and niche actors.