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SSAB to Substantially Increase Capacity for Quenched and Tempered Steels

08/25/2008 - SSAB announced a SEK 5.3-billion investment program to further develop the company’s production base in Sweden and the United States.

SSAB announced a SEK 5.3-billion investment program to further develop the company’s production base in Sweden and the United States. Launched to support the company’s effort to meet increasingly strong global demand for quenched and tempered (Q&T) steels, the investments will result in a major capacity increase for Q&T steels.
 
“This shows that we have a firm belief in the future,” said Olof Faxander, CEO of SSAB. “The investment program is part of SSAB's strategic focus to strengthen the product portfolio toward more value-added steel products, and to further meet customers' growing demand for quenched and tempered steels.
 
Global demand for Q&T steels has demonstrated strong growth in recent years. Q&T plate and strip are used throughout the manufacturing and construction sectors in applications where properties such as strength, hardness and toughness are required beyond those available within commercial grades. SSAB’s product offering provides significant economic and environmental advantages compared to less advanced steels.
 
“This (investment) enables us to continue to develop our strong production base and to further strengthen our position as a leading global supplier of Q&T steels,” added Faxander. “More value-added steel products are expected to lead to higher earnings stability and generate economic returns well above the group’s long term targets”.
 
SSAB’s investment program comprises the following projects in the United States and at the Swedish sites Borlänge and Oxelösund:
 
  • A new fully integrated heat treating line for Q&T steel plate to be located at one of SSAB's two U.S. plate mills (either in Montpelier, Iowa, or Mobile, Ala.). The new line will have an annual capacity of 300,000 tonnes.
  • Upgrades in the U.S. facilities to capture certain synergies announced at the time of the acquisition of IPSCO.
  • A new cut-to-length facility in Borlänge to support production of Q&T strip steels. The aim is to fully utilize the competitive strengths of the hot strip mill and to leverage SSAB’s high end-user application know-how. Through this investment, Borlänge will have the ability to produce quenched strip products. The initial target is to supply the market with a volume of 300,000 tonnes, with possibilities for further development.
  • Downstream and de-bottlenecking investments at the Oxelösund site to further develop the highly specialized production system at Oxelösund. The Q&T steel volume in Oxelösund will increase by 80,000 tonnes once the investment program is completed, which will also help to further strengthen SSAB’s leading position within Q&T plate.  
The expansion program, which will be commissioned in phases, is to be completed in 2012. The investments are expected to be financed through internally generated cash flow.
 
SSAB, a global niche producer of high-strength steels with a leading market position and productivity, develops solutions in order to increase the competitiveness of its customers.