It is reported that though a planned expansion at its 400 employee Axis mill remains stalled, Swedish steelmaker SSAB has begun construction on a research and development facility at its other American mill in Montpelier in Iowa.

The company will spend USD 11 million to build a 25,000 square foot building and stock it with specialized equipment. SSAB plans to hire 13 employees for the facility, which will work to develop new kinds of high strength steel. It is part of the company's overall strategy to pursue market niches for specialized products, like the ultra tough steel needed to make mining equipment, or to make lighter weight cars.

Mr Michelle Klebuc general counsel for SSAB's North American division said that "Because of the economic downturn, we've put most of our capital projects on hold, but our board released this one."

SSAB announced plans a year ago for a USD 460 million, 180 job expansion of the Axis mill, allowing it to treat more steel plate. Axis lost a competition for the research facility, while the Iowa location lost a competition for the mill expansion.

(Sourced from www.al.com)