SSAB and Ruukki Announce Merger Plans
01/23/2014 - Swedish steelmaker SSAB and Finnish steel company Rautaruukki (Ruukki) announced plans to merge into one company.
The combined company would be a Nordic and U.S.-based steel company with a global reach and cost-efficient and flexible production, specializing in high-strength steels, standard strip and plate products, as well as tubular products, the companies said. Annual cost synergies as a result of the merger would be up to €150 million.
The proposed merger would strengthen competitiveness in the European part of the steel operations by improving the cost position and increasing production flexibility to better adapt to changes in market demand. The combination would enhance the investments in product development, R&D and close collaboration with customers.
SSAB’s construction related operations (Plannja) will be combined with Ruukki’s Building Products and Ruukki’s Building Systems operations to form a separate construction business division.
The preliminary combined net sales for 2012 amounted to approximately € 7.3 billion and SSAB and Rautaruukki combined will have around 17,500 employees. The combined company will have steel production facilities in Sweden, Finland and the U.S. with a combined annual steel production capacity of 8.8 million tons.
The combined company will be led by the president and CEO of SSAB, Martin Lindqvist. The president and CEO of Rautaruukki, Sakari Tamminen, will continue as president and CEO of Rautaruukki until completion of the share exchange offer, when he will retire at the age of 60.
The organization will be centered around the following areas:
The proposed merger would strengthen competitiveness in the European part of the steel operations by improving the cost position and increasing production flexibility to better adapt to changes in market demand. The combination would enhance the investments in product development, R&D and close collaboration with customers.
SSAB’s construction related operations (Plannja) will be combined with Ruukki’s Building Products and Ruukki’s Building Systems operations to form a separate construction business division.
The preliminary combined net sales for 2012 amounted to approximately € 7.3 billion and SSAB and Rautaruukki combined will have around 17,500 employees. The combined company will have steel production facilities in Sweden, Finland and the U.S. with a combined annual steel production capacity of 8.8 million tons.
The combined company will be led by the president and CEO of SSAB, Martin Lindqvist. The president and CEO of Rautaruukki, Sakari Tamminen, will continue as president and CEO of Rautaruukki until completion of the share exchange offer, when he will retire at the age of 60.
The organization will be centered around the following areas:
- Quenched & Tempered Steels, division led from Sweden by Melker Jernberg
- European Flat Carbon Steels (mainly strip), division led from Finland by Olavi Huhtala
- American Flat Carbon Steels (mainly plate), division led from USA by Charles Schmitt
- Nordic Steel Distribution, division led from Sweden by Mikael Nyquist
- Construction Products & Systems, division led from Finland by Marko Somerma
