Tibnor to acquire Finnish steel distributor
Swedish specialty steel producer SSAB has announced that its subsidiary distributor Tibnor has signed an agreement to acquire Finland-based steel distributor Ovako Metals Oy, in a strategic move to strengthen its presence in the Nordic market and broaden its product offering.
Ovako Metals Oy generated approximately €40 million in revenue in 2024 and employs around 40 people. Upon completion of the acquisition, it is reported that Tibnor will take over the company’s distribution operations, including its product portfolio, logistics and warehouse activities, processing services and local sales teams.
The acquisition is subject to regulatory competition approval in Finland, and both SSAB and Ovako expect the transaction to be completed during the first quarter of 2026, pending clearance by the relevant authorities.
Fredrik Haglund, CEO of Tibnor, described the agreement as aligned with the company’s growth strategy, bolstering its footprint in Finland while enhancing service levels and product offerings in the region.
The planned acquisition marks a key step for SSAB’s distribution network across the Nordics and Baltics, reflecting broader consolidation in steel and metals supply chains to enhance market reach and competitiveness.
SSAB targets advanced grades, pivots from standard products
Swedish steelmaker SSAB is repositioning away from standard products such as hot rolled coil to focus on advanced and premium grades, president & chief executive Johnny Sjöström said during its Capital Markets Day this week in Oxelösund, attended by Kallanish.
It aims to increase shipments of its premium product offering to 65% by 2030 and 75% by 2035, compared to 55% today. As a result of this, the company expects to produce less standard grade HRC.
“In a world of overcapacity, the only way to be successful is being unique and create unique customer value” Sjöström said.
He noted that other companies who were struggling to make money were now also looking at focusing investments on downstream operations for value-added products. “We have already done that journey” he noted, with the past acquisitions of Tibnor and Ruukki. This gives the company diversification, he added.
“The market has been able to buy extremely cheap material coming from Asia, from China, material has been subsidised, not even covering the cost of variable costs, the raw materials. That is not sustainable,” he said.
The move to premium products will mean less volatility, and less sensitivity to market conditions. This will mean the firm is less dependent on spot prices.
It will now focus on three key areas. It will expand its offering of advanced steel grades, with SSAB Special Steels’ shipments expected to increase by approximately 5% per year until 2030, while SSAB Europe will gradually increase the share of premium products.
Its value-add services and solutions will be supported by subsidiaries Tibnor and Ruukki Construction.
In the third area, decarbonised steel, the steelmaker expects its European division to have shipments of 1 million tonnes/year in five years time. The company notes a premium value of €200-300/tonne ($230-245/t). However, it sees a circa 15% share of SSAB Zero and SSBAB fossil-free products volumes being sold with a premium after the EAF transformation.
It notes a strong demand increase for high-strength steel in past years, which is expected to continue beyond 2030. This is in the sectors of automotive, buildings and infrastructure, and mechanical equipment.
It will achieve the transformation through its planned investments, which include building electric arc furnaces in Oxelösund and Luleå, as well as a new mini at the latter. It has also adjusted its technical footprint for Raahe, away from a mini mill, to an “Oxelösund-like” solution, instead “leveraging Raahe’s existing downstream assets”.
When asked by Kallanish, Sjöström did not disclose a date by when this would happen or the remaining lifespan of the asset, as it was dependent on raw materials supply such as scrap. Having iron ore-based production in Finland will help it to mitigate this risk.
Carrie Bone UK
Tibnor delivers SSAB Zero Steel for Norway’s First Electric Supply Ships
A Norwegian shipyard will be the first to use SSAB Zero steel for ship-building, Kallanish learns from the Swedish mill group.
SSAB Zero is SSAB’S proprietary brand made from recycled steel and produced with fossil-free electricity and biogas. The Salthammer shipyard in Vestnes has ordered it for two 30-metre electric-powered supply ships.
Norwegian shipping services company AQS Rederi AS has commissioned two Coastern 28eH supply ships from the shipbuilder, which will be used for fish farming tasks. Both vessels feature a newly developed design from Tomra Engineering AS. SSAB subsidiary Tibnor will deliver a total of 300 tonnes of SSAB Zero Salthammer Båtbyggeri in two batches.
The ships will have electric propulsion, powered by 2,000 kWh and 1,600 kWh batteries respectively. The Coastern 28eH is a versatile supply ship with large cranes, efficient deck equipment and a bollard pull of over 25 tonnes.
“It’s great to have Salthammer aboard on our journey toward fossil-free value chains. SSAB Zerois a great material for new generation electric-powered supply ships. We will deliver the steel in 6-15mm thick steel sheets, and the batch for the first ship will leave already in November,” says Svein Johansen, sales director at Tibnor.
Christian Koehl Germany
