SSAB signs letter of intent with Norway’s Smith Stål for fossil-free steel deliveries
Swedish steelmaker SSAB and Norwegian stockiest and distributor Smith Stål have signed a letter of intent Sept. 30 for the future deliveries of fossil-free steel, SSAB said in a statement.
The companies did not disclose the volumes of the agreement.
SSAB has developed two types of low-carbon steel — SSAB zero and SSAB fossil-free steel. SSAB zero is based on recycled steel scrap and produced with fossil-free electricity and biogas, while SSAB fossil-free steel is produced from iron ore using the HYBRIT technology developed together by SSAB, iron ore producer LKAB and energy company Vattenfall.
The technology, which has been tested on a pilot scale, uses hydrogen produced with fossil-free electricity to produce iron, the primary raw material in steelmaking and is expected to be available commercially from 2026 onward.
“It is a great pleasure for our company that we in the future can deliver SSAB’s fossil-free steel to our customers in Norway,” Eirik Berg, director at Smith Stål, said. “Being top 3 among Norwegian steel distributors, we feel a great demand on us when delivering to industry, building and offshore segment.”
Smith Stal provides a stock of plates, beams, hollow sections, pipes and bars and has also its own service centers to produce value-added steels.
“I am happy to welcome Smith Stal as a fossil-free steel partner, adding another distribution partner to our very important Norwegian market,” Matts Nilsson, SSAB’s head of sales Sweden and Norway, said. “Together we are building a strong value chain for our Norwegian customers.”
The agreement between SSAB and Smith Stal is the fourth one that the steelmaker has signed for its future steel deliveries in only two weeks.
Following the market trend and recent technology innovations, Platts, part of S&P Global Commodity Insights, launched Sept. 11 the first ever carbon-accounted rebar and medium sections assessments. It previously launched in May 2023 the world’s first carbon-accounted flat steel assessment for hot-rolled coil.
Platts last assessed Northwest European hot-rolled coil carbon-accounted at Eur625 per metric ton ex-works Ruhr Sept. 27, up Eur5/t on the day.
Platts last assessed Northwest European carbon-accounted rebar at Eur645/t ex-works Northwest Europe Sept. 25, down Eur10/t on the week. Platts assessed European carbon-accounted medium sections at Eur845/t DDP Europe Sept. 25, down Eur10/t on the week.
Smith Stål strengthens their position with the strategic acquisition of Stena Stål
Smith Stål a leader within the Norwegian market for the supply of steel, rebar and metals has entered into an agreement to acquire Stena Stål AS.
The transaction expands Smith Ståls customer base and notably incorporates an agreement to distribute a range of specialty steel and tools through Smith Ståls national sales network, widening further their product offering. Employees of Stena Stål AS will join Smith Stål and will have immediate access to a wider selection of locally stocked items from Smith Stål to present to the customer base.
Stena Stål AS had a turnover of 70 million NOK in 2023 and 11 employees. The takeover will be completed in the first quarter of 2024.
“The merger will provide significant synergies that will benefit both our and Stena’s customers through more efficient operations and increased competitiveness across a larger product range. Stena is a quality operation, and the inherent expertise is valuable both for us and our customers.” says Arne Reinertsen, CEO of E.A. Smith.
“This will be a beneficial transaction for both employees and customers of Stena Stål AS, and we are pleased that Smith Stål is taking the business forward. E.A. Smith is a stable and long-term owner, and we look forward to future cooperation with Smith Stål to develop the distribution of product categories in which we are strong in Sweden into the Norwegian market together.” says Stefan Svensson, CEO of Stena Stål AS.
The operations at the Moss warehouse will be discontinued after the takeover and moved to Smith Ståls facility in Holmestrand.
Source: smithstal.no