Sweden’s SSAB has set out its new strategic targets for 2022, the steelmaker tells Kallanish.
The company lists four major objectives. Firstly, SSAB Europe will ship 1.6 million tonnes of steel in 2022. In 2018 the division shipped 1.3mt.
Another target is that the European segment will ship 800,000t of advanced high-strength steel products (AHSS) to the automotive industry versus 562,000t in 2018 and 900,000t of premium steel (2018: 718,000t). This means that the share of premium products will reach 46% in 2022 versus 36% in 2018.
SSAB Americas aims to increase the share premium products to 39% during 2022 (2018: 29%).
Finally, SSAB Services will increase sales to SEK 4.5 billion ($473 million) through a combination of organic growth and acquisitions. The equivalent value was SEK 2.4 billion in 2018.
In addition to these strategic targets, distribution subsidiary Tibnor aims to reach an Ebitda margin of more than 5% and a return on capital employed of more than 15% in 2022. Ruukki Construction aims to reach an Ebitda margin of more than 10% in 2022.
“We have generated and will continue to generate good cash flow. The balance sheet has been strengthened significantly in recent years. This allows us to continue to invest with consideration in removing bottlenecks in the production of high-strength steel whilst making the transition to fossil-free steelmaking”, says president and ceo Martin Lindqvist.
