During the fourth quarter of 2020, SSAB announced that it was in discussions with Tata Steel. The companies considered an acquisition of the IJmuiden steel mill and related downstream assets. After deeper analysis and discussions, it became clear that there were limited possibilities to integrate IJmuiden into the SSAB strategic framework. Discussions with Tata Steel have therefore concluded.
‘We have carefully evaluated Tata Steel IJmuiden and have concluded that an acquisition would be difficult for technical reasons’, says Martin Lindqvist, President and CEO at SSAB. ‘We cannot be sufficiently certain that we could implement our industrial plan with the preferred technical solutions as quickly as we would wish. We cannot align Tata Steel IJmuiden with our sustainability strategy in the way desired. The synergies that we saw in the transaction would not fully justify the costs and investments required for our desired transformation. This means that overall, the transaction would not meet our financial expectations.’
SSAB aims to lead the transformation of the steel industry to fossil-free production. The group’s goal is to be the first, in 2026, to supply fossil-free steel to market and to be a fossil-free company by 2045.
Fossil free
The rationale behind the discussions concerning Tata Steel IJmuiden was based on the clear desire of SSAB’s customers for a supplier of a broad range of fossil-free steel. The expanded range of steel products of SSab can in the long term be converted to fossil-free products. By then SSAB can become a more comprehensive supplier of fossil-free steel in key segments. This has also been about creating synergies between existing operations in the Nordics and in IJmuiden and getting closer to the European market.
‘The transition to fossil-free steel is a top priority for SSAB. We are continuously on the lookout for possibilities to invest and step up the pace of this transition. Completely fossil-free steel will be a premium segment with great growth potential. We see large demand from customers, primarily within Automotive and Heavy Transport’, says Lindqvist. ‘I am convinced that SSAB has an important role to play in the industry’s continued transformation and regeneration.’
