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SSAB's value chain

SSAB’s business model is built on fostering close, long-term customer relationships. Through intense collaboration, SSAB continuously develops new products, applications, services and processes in order to improve our customers’ performance in sustainability and overall efficiency.

SSAB’s value creation model describes how value is created through SSAB’s business model, which takes different types of inputs and transforms them into outputs through business activities. These create value for SSAB and our stakeholders, including society and the environment. Most value is created in the use phase of SSAB’s products, as our customers are able to produce lighter and stronger end products. SSAB aims to reduce the environmental impact of our steel products in every phase of the lifecycle, from raw material extraction to recycling at the end of a product’s life.

SSAB strives to integrate sustainability into its culture since the company’s endeavors depend on every employee’s contribution. Every activity undertaken is guided by:

Capitals

People

  • 14,300 employees in more than 50 countries
  • Subcontractors and service providers

Infrastructure

  • 5 steel production sites
  • Other production and processing facilities
  • Steel service centers
  • Hardox® Wearparts network
  • Stocks and distribution network
  • Sales office network

Expertise and reputation

  • Research and development
  • Knowledge in high-strength steels
  • Knowledge of customers’ applications
  • Expertise in technical support
  • Brands and brand programs
  • Patents

Financial

  • Capital employed
  • Equity
  • Long-term debt

Natural

  • Iron ore pellets
  • Scrap metal
  • Coal, coke and other reducing agents
  • Other raw materials
  • Fuels
  • Electricity
  • Water

Social/Relationship

  • Strong, responsible supplier network, 20,000 suppliers
  • Global sales network
  • Joint innovation projects with customers
  • Customer training
  • Community engagement
  • Industry and government participation

Guiding principles

Sourcing

The raw materials used to make iron and steel account for SSAB’s most significant purchases. Suppliers must comply both with SSAB’s own policies and with international socialand environmental guidelines.


Production

Operational efficiency, flexibility, environmentally-sound technology and safe work environments are the core of SSAB’s production.


Transportation

SSAB’s business is dependent on efficient transportation throughout all the stages of the value chain. SSAB focuses on minimizing our environmental footprint through timely transportation and minimized fuel consumption.

Sales

SSAB has an extensive global sales network, which enables close collaboration with customers.


Use

Through the use of SSAB’s high-strength steels, customers are able to manufacture products which use less material, are stronger, lighter and more durable, and reduce costs, thus making customers and their products more competitive.


Recycling

Steel is a unique material that retains its properties no matter how many times it is recycled. Using recycled steel in steel production increases material efficiency and reduces CO2 emissions.

Output

Products and solutions

  • SSAB Special steels
  • Automotive premium steels
  • Other high-quality strip, plate and tubular products
  • Construction products and solutions

Services

  • Technical support
  • Innovation support
  • Customer partnership

By-products

  • Residuals utilized internally or externally
  • Scrap metal for recycling
  • Electricity generated from process gases
  • Heat sold externally

Emissions and waste

  • Emissions into air
  • Waste






Outcome

Economic value created and distributed to stakeholders

  • Payments to suppliers of raw materials, goods and services
  • Employee wages and benefits
  • Dividends, interest payments and financial expenses
  • Taxes to the public sector
  • Donations and sponsored local activities

Sustainable offerings

  • Innovative, sustainable steel applications
  • Customers’ improved competitiveness
  • Reduced impact on the environment through higher penetration rate of high-strength steels globally; end products from less raw materials, with lower weight and fuel consumption, increased load capacity and longer lifespans all leading to reduced CO2 emissions in the use phase
  • Improved energy efficiency in buildings

Sustainable operations

  • More efficient use of natural resources and reduced CO2 emissions by utilizing residuals and recycled steel as raw materials
  • Improved energy efficiency through energy recovery and systematic energy management
  • Contribution to climate change mitigation and future fossil-free steel production with the HYBRIT initiative

Responsible partner

  • A safe and healthy work environment for SSAB’s employees and contractors 
  • Equal opportunities for a diverse and inclusive workforce
  • Opportunities for competence and career development for employees
  • Responsible business practices throughout the value chain
  • Long-term contracts and relationships with suppliers
  • Creation of local employment through own operations and local sourcing
  • Local sponsorships and internships
  • Attracting future employees

Research and Development

R&D aims to improve process efficiency and to create innovative and sustainable products that strengthen the business of SSAB and its customers.
Research and Development
SSAB's value chain, supply

Supply

Effective and responsible sourcing, which includes environmental and social aspects such as labor conditions, reduces SSAB’s footprint and risk profile with regards to up-stream operations.

Production

Energy-intensive production requires high focus on material and energy efficiency to mitigate environmental impacts, including climate change. Health and safety in the workplace is a top priority as well as managing labor rights and other social impacts of our operations responsibly.
SSABs value chain, Production
SSABs value chain Transport

Transportation

SSAB’s business depends on efficient transportation throughout all the stages of the value chain. Logistics efficiency in terms of timely and optimized transportation, as well as reduced fuel rates, have direct economic and environmental impact for SSAB.

Sales

The sales stage, including all marketing activities and customer interaction, is key to identifying customer needs and gaining market insights. Collaboration and new design solutions enable SSAB to help customers to improve their processes, products and environmental footprint.
SSAB's value chain, Sales
SSAB's value chain, Customers

Customers / users

SSAB’s products and solutions can significantly reduce the environmental footprint of customers and end-users. High-strength steels results in less use of materials, which leads to reduced emissions during the user phase through lighter construction and longer durability of products.

End-of-life

Steel is the most recycled material in the world. More steel is recycled than all other recyclable materials combined. Steel is 100% recyclable and its unique properties mean it can be recycled infinitely without loss of properties or performance. A critical element in reducing carbon emissions originating in the steel lifecycle is to optimize steel recycling.
SSAB's value chain End-of-life