SSAB a cornerstone in steel industry

The global demand for steel increased 7 percent last year, with China contributing the most to the upsurge.

To meet the rising demand, Sweden-based SSAB set up in 2007 a distribution center in Kunshan, outside of Shanghai, as its first major step to expand its presence in the booming market.

"China is the market that offers the greatest growth opportunities for our niche products," said Olof Faxander, CEO of the Sweden-based producer of high-strength steel established in 1978.

In 2007, SSAB acquired steel company IPSCO, a leading North American maker of heavy plate, as part of Faxander's mid-term program to raise profitability and growth.

"This acquisition has been an important strategic step in order to increase our geographical spread and to ensure production capacity for future growth," the company chief explained.

Already with a strong foothold in North America, SSAB is set to expand further into Europe and Asia with a unique focus on China.

"We see a growth potential here. In recent years, most of the customers that we have in China have experienced tremendous growth in their own businesses and we are extremely happy about that," said Chief Technical Officer Martin Pei.

Meanwhile, SSAB has increased efforts to address environmental issues by producing advanced high-strength steel with a smaller carbon footprint and a longer product life. The use of high strength steel enables the construction of lighter and more durable structural applications, which requires less fuel to transport when used in the heavy transportation sector.

With an annual turnover of around $6.46 billion in 2007 and 10,000 employees in over 40 countries, SSAB is poised to become one of the world's big players in the special steel industry. And as the world keeps a steady eye on China's growth, SSAB is sure to be a part of this.

"I hope SSAB can increasingly support the development of Chinese industries," Pei said.

www.ssab.com

(China Daily 03/02/2009 page6)