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                                                SSAB Americas

                                                Market-leading North American producer of quality steel plate and coil

                                                Fast facts

                                                SSAB Americas is the largest producer and supplier of steel plate in North America, strongly positioned and highly recognized in the region for cost efficiency and quality.

                                                Number of employees: Approximately 1,250

                                                Share of SSAB Group's total EBITDA: 44% (2019)

                                                Sales in 2019: SEK 17,460 million

                                                Head of SSAB Europe: Charles Schmitt, EVP

                                                Share of SSAB Group's total sales: 23% (2019)

                                                Steel shipments 2019: 2.0 million tonnes

                                                Market position

                                                SSAB is the largest producer and supplier of heavy plate in North America, with a market share of approximately 27% in 2019. SSAB maintains a strong market position in the energy and heavy transport customer segments. The US accounts for about 85% of sales, Canada 10% and Latin America 5%.


                                                Market drivers

                                                There is a significant need to reinvest in infrastructure in North America. This means several end-user segments, such as heavy fabrication and construction equipment, are expected to improve. Also, demand from wind energy is expected to remain positive, and the outlook for investment in line pipe projects going forward is also favorable.
                                                Market position

                                                Strengths

                                                • Strong North American production base with industry-best quality and a leading cost position
                                                • Two modern steel production facilities utilizing electric arc furnaces (EAF), which use recycled scrap metal as raw material
                                                • Close partnerships with customers to develop unique customized products and solutions

                                                Strategy

                                                The foundation of SSAB Americas’ strategy remains unchanged, with a focus on a high level of service and superior quality, while maintaining the lowest cost position and the most flexible setup in the market, as well as leadership in safety. SSAB continues to invest in more advanced production capacity; therefore, a higher share of the production capacity in North America will be allocated to high-strength steels (sold by SSAB Special Steels) and premium products in the future. This will strengthen the overall product mix of the SSAB Group. 

                                                Against this backdrop, SSAB Americas has developed a new go-to-market and service model, targeting a diverse customer base with a higher share of fabricators and OEMs than today. At the same time, the portfolio of products and services will be differentiated to facilitate more growth of premium volume, such as products targeted to the energy, offshore, and railway and shipbuilding segments.

                                                There are some positive factors for the mid-term outlook for plate demand, as there is a significant need to reinvest in infrastructure in North America. If more investments materialize, several end-user segments, such as heavy fabrication and construction equipment, are expected to improve. Also, demand from wind energy is expected to remain positive, and the outlook for investment in line pipe projects going forward is favorable.

                                                Strategic targets
                                                - Increase the share of premium products to 39% by 2022 (2019: 33%)
                                                - Increase the share of shipments to end-users to be more than 50% (2019: 45%)
                                                 
                                                Customers and end users

                                                Customers and end-users

                                                SSAB Americas manufactures a wide range of quality steel products including advanced high-strength steels that are used in various industries. SSAB Americas sells products both directly to end customers and to steel service centers. Key customer segments include energy, heavy transport, construction, infrastructure and construction equipment.

                                                Production

                                                SSAB Americas’ modern steel mills are located in Mobile, Alabama and Montpelier, Iowa and have a combined annual production capacity of 2.4 million tonnes. Both mills utilize a scrap-based, electric arc furnace (EAF) method to produce steel. The mills are strategically located to cover the industrial heartland in North America, with access to the strategic port systems, intercoastal waterways and major railways, which provide logistical advantages.

                                                SSAB’s modern steel mill in Alabama was founded in 2001. The mill includes two quenching and tempering (Q&T) lines with a total production capacity of more than 300,000 tonnes a year. Shipments of these products are accounted for in the SSAB Special Steels division. The newest Q&T line in Alabama is one of the world’s most advanced.

                                                In addition to the two steel mills, SSAB Americas operates three cut-to-length facilities located in Houston, Texas; St. Paul, Minnesota; and Toronto, Ontario (Canada). With the flexibility to handle both SSAB’s steel as well as steel from external suppliers, these locations process coils of various widths, gauges and grades to meet customer-specific requirements with an enhanced service model.

                                                SSAB Americas operates with the least possible impact on the environment. To produce SSAB Americas’ steel, the company uses recovered scrap metal – more than 94% recycled materials. This is material that has been diverted from landfills, everything from discarded appliances to old car parts. SSAB Americas uses recovered scrap tires as a raw material substitute for carbon in the production process. The organization recycles more than 400,000 tires a year, more than 6 million scrap tires to date. SSAB Americas utilizes renewable electrical energy in its manufacturing process, particularly wind energy bought through a certified program. SSAB Americas’ production process results in 63% fewer CO2 emissions compared to the 2016 US steel industry average.

                                                SSAB Americas has also been committed to reducing energy consumption, recycling both hazardous and non-hazardous waste, as well as recycling water for conservation. SSAB Americas was the first electric arc furnace steel producer in North America to successfully certify all of its Environmental Management Systems to the ISO 14001 standard. Funding is dedicated annually for ISO 14001 Continuous Improvement projects.

                                                Products

                                                SSAB Americas produces heavy plate and coils. SSAB Americas’ steel is 100% recyclable and is made from 94% recycled materials. The durability and high strength of plate and coil produced by SSAB Americas means it lasts a long time, adding years to the lifecycle of products made using SSAB Americas’ steel and reducing customers’ carbon footprint. This long-lasting steel is used for applications such as transportation, where end users can enjoy reduced fuel consumption, and in the energy sector, contributing to the transition to, more renewable energy resources like wind power.

                                                In 2016, SSAB Americas launched EcoSmart, an innovative customer awareness program designed to showcase SSAB’s commitment to sustainability. Nearly 50 customers have been onboarded to the program since its inception. Customers participating in the program receive products and documentation marked with the EcoSmart label, and confidence that SSAB is an environmentally responsible supplier.


                                                Coils

                                                Competitors

                                                Domestic steel producers, such as Nucor, ArcelorMittal, Evraz, Essar Algoma and imported products.

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