SSAB AB ( shortening of the earlier name Svenskt Stål AB) is a Swedish steel company and Scandinavia's largest producer of unalloyed and low carbon steel flat products. SSAB is headquartered in Stockholm and manufacturing plants in Luleå, Borlänge, Oxelösund and Finspång. 2007 SSAB had about 10 200 employees and produced about 7.7 million tonnes of crude steel. Blast furnaces are in Luleå and Oxelösund. SSAB's main products are sheets manufactured by SSAB in Borlänge and Luleå Tunnplåt, and plates manufactured by SSAB Oxelösund. Other subsidiaries are Dickson Plåt Service Center ( sheet metal blank ), Plannja (structural steel products) and Tibnor, SSAB's trading company. Chairman and CEO since 2006 Olof Faxander.
The steel crisis of the 1970s
The steel crisis of the 1970s sparked a restructuring of the Swedish steel industry. Domnarvets Järnverk had to place an elaborate production with a wide-ranging spectrum of products and urgently needed new investment. The State Järnverk Norrbotten AB ( NJA ) needed modernization and continued running a loss and Gränges AB with the Oxelösunds Järnverks AB was threatened by bankruptcy. The owners were ready to make any further grants and so the then government decided to intervene. The so-called trade Steel Committee ( Handelsstålsutredningen ) was established and entrusted with the task to develop a plan for the necessary restructuring of the industry. Led by Lars Nabseth the Committee came to the conclusion that a merger of steel companies in a state-owned company, the only way to save the industry represented. The CEO of Björn Wahlström NJA got the job with the other companies to enter into negotiations.
Building a Business
After a long negotiation and decision Reichstag Svenskt Stål - aktiebolag was founded in late 1977 and took on 1 January 1978 its operation on. In the company's steel operations of Stora Kopparbergs Bergslags AB (mines and iron processing ), the Gränges AB (mines, iron processing and railroad operation) and the NJA were received (iron processing). Participation in the new structures were the old owners: 50 percent state Statföretag AB and with 25 percent and Stora Kopparberg Gränges. For CEO Björn Wahlström was ordered. At this time some 10 000 employees and workers working in the new business. The mitübernommenen mines, most of them located in the Bergslagen were largely shut down within a short time. Only the two mines Grängesbergs and Dannemora were initially operated. The railway company TGOJ was separated in two steps in 1982 and 1989.
In subsequent years, numerous restructuring and plant closures took place. Investments focused on profitable products and the places with the best conditions. 1982, the company applied for the first time in the profit zone. The shares of Stora Kopparbergs and Gränges in 1981 and 1986 respectively repurchased. 1986 The privatization process was initiated that led to listing in 1989.
With the IPO, the company also made the competition from foreign competitors. As a prerequisite for improving the quality of sheet metal production in Borlänge was considered, among other things, to keep the automotive manufacturers as customers. As a result, Sweden's largest investment was made in Borlänge in industrial goods this time, known as the band 82
Establishment of SSAB and SSAB Oxelösund Tunnplåt
1987, a new strategic plan was created, in which the concentration was agreed in the production of thin sheets. Unprofitable production should be closed as soon as possible and unprofitable product lines are set. 1989 and 1992 the mines Grängesberg and Danne More were then closed, as it predicted a further decline in prices for the metal ore mining.
1988 SSAB was reorganized into its present form as a parent company with several subsidiaries. To take advantage of the synergies of metallurgy and precision sheet metal fabrication, which works in Borlänge and Luleå in the SSAB AB Tunnplåt were summarized. The plant in Oxelösund was to SSAB Oxelösund AB. A third subsidiary was established with SSAB Profiler, but later sold to Ovako Steel. Due to over-capacity in 1989 was Domnarvets elektrostålverk closed.
Simultaneously with the reorganization of the steel consumption grew in Western Europe and the shortage of steel allowed price increases. Within a year, tripled by the consolidated profit and subsequently brought the owner of the company on the Stockholm Stock Exchange. Until 1992, the Swedish government sold its remaining shares in SSAB.