Mr Martin Lindqvist president & CEO of SSAB said that "During the third quarter, implementation will continue of a number of projects aimed at strengthening our position as a leading supplier of quenched steels. In Borlänge, a new quenching line and cutting line are now being installed, while in Mobile, Alabama, work is underway on the new quenching line. In Oxelösund and Kunshan, investments are taking place to improve logistics, reduce lead times and improve the service level to our customers. Taken together, these investments will provide us with improved possibilities for meeting our customers’ demand for quenched steels. The investment projects will be brought into commission towards the end of the year and at the beginning of next year, and will increase our quenched steel capacity by 500,000 tonnes to approximately 1,300,000 tonnes. In addition, one of our blast furnaces in Oxelösund is undergoing a relining during the third quarter and there will be a major maintenance outage in Montpelier, Iowa towards the end of the quarter."

He added that "The maintenance work and a normal lower level of activity during the third quarter will have a negative impact on earnings. These factors, together with continued price pressure, increased raw materials costs, and uncertainty concerning developments in Europe, indicate that the third quarter will be weaker than the second quarter. However, the recovery is continuing and demand is expected to be stronger than in 2010."