SSAB

Operations

SSAB is a niche steel company with a base in Western Europe and North America. The steel operations have been successfully developed through a conscious specialization strategy aimed at consolidating the company’s position as a leading producer of highstrength steel. SSAB’s products make customers’ products lighter, stronger and more durable. In the selected product segments, SSAB has achieved a strong market position and high profitability.

In the sheet segment, SSAB specializes in advanced high-strength sheet, which is used in the engineering industry and by container manufacturers, for example. In the plate segment, SSAB is the world’s leading producer of quenched steels, i.e., plate with extra high strength and good weldability combined with high abrasion-resistance and good formability. Quenched steels are used in construction machinery, mining
equipment and cranes, among other things.

SSAB works according to a goal-oriented strategy aimed at accelerating growth for its niche products and enhancing the profitability of existing plants. To more clearly convey the customer offering, a new organizational structure was adopted as from January 2010, consisting of three geographic business areas.

SSAB - Our ownership perspective

World-leading position in niche quenched steels and advanced high-strength sheet segments creates solid foundation for growth and sustained high profitability.

• Acquisition of IPSCO’s North American steel business strengthens SSAB’s position and enables continued international expansion.
• New market-oriented organization.
• The cost-cutting program designed to lower annual operating expenses by at least SEK 1 billion has had a faster impact than planned.

Ownership focus

Maintain position with leading profitability through continued expansion in the niche high-strength sheet segment.

SSAB - Performance 2009

• Net sales amounted to SEK 29.8 billion (54.3).
• Income after net financial items totaled SEK –2.1 billion (9.0).
• Demand fell sharply, but stabilized during the fourth quarter.
• The cost-cutting program that was launched in 2008 in an effort to lower fixed costs by at least SEK 1 billion per year from 2010 had a faster outcome than planned.