December 03, 2008

SSAB to invests in plate heat treatment capacity in US

SSAB Svenskt Stal AB has decided to construct a new advanced heat treating line for quenched and tempered steel plate in the United States. The investment is part of SSAB's strategic focus to increase the volume of core niche steel products and to better meet customers' growing needs for quench and tempered steels. The investment of SEK 1 to SEK 1.5 billions increases the capacity with 200 kilo tonnes to 300 kilo tonnes.

SSAB in a statement said that “The heat treating facility, which will be located at one of SSAB's two plate mills in Montpelier, Iowa or Mobile, Alabama in the United States, will process steel produced at the Company's plants. The final location of the facility has yet to be determined and will be based on consideration of site-specific issues, including regulatory approvals.”

Mr Olof Faxander CEO of SSAB said that “This is a step to further meet the strong and increasing global demand for quenched and tempered steels. The investment enables us to continue to develop the strong production base we now have in the US. This will strengthen our strategy to be the global leader in high strength steel.”

He added that heat treated steel plate is used throughout the manufacturing and construction sectors in applications where strength, hardness and toughness are required beyond those available from as-rolled material. Thanks to its superior properties, the steel from SSAB provides significant environmental advantages, a factor which has a positive influence on demand.