STOCKHOLM, Sweden--(BUSINESS WIRE)--Regulatory News:
SSAB has today given notice of redundancy regarding 210 employees at the production site in Borlänge, Sweden. The notice of redundancy is due to the company’s proposal to close the galvanizing line and color-coating line in Borlänge. Through this structural change, the SSAB Europe division is optimizing and streamlining the production of certain products to different production sites. The strategic aim of this restructuring is that the Borlänge mill will in future specialize in hot-rolled and cold-rolled strip products.
SSAB will now initiate employer-employee negotiations in Sweden. The negotiations affect 210 employees out of a total of 2,100 employees at SSAB´s mill in Borlänge.
This measure represents part of the previously announced efficiency and synergy program resulting from last year´s combination of SSAB and Rautaruukki. The cost synergies are expected to total SEK 1.4 billion (around EUR 150 million). “It´s very sad to have to give notice of cutbacks, but after a thorough study of the different alternatives and given the current market situation we believe that this is a necessary step in the optimization of our operations and, ultimately, to return to long-term profitability. We will be proactive in providing support to all colleagues affected by this reduction,” says Olavi Huhtala, Head of SSAB Europe. Hot-dip galvanized steels will continue to be produced in Hämeenlinna, Finland and color-coated products in Hämeenlinna and Kankanpää in Finland, and in Finspång in Sweden. The announced changes in Borlänge will not affect customer deliveries or service. “This structural change is part of our strategy to specialize the production sites and Borlänge will have an important role in increasing the production of our hot-rolled products, and also in the production and development of our cold-rolled advanced high-strength steels for the automotive segment,” says Olavi Huhtala.
This information is published by SSAB pursuant to the requirements of the Finnish Securities Market Act and the Swedish Securities Market Act. Submitted for publication at 14.15 am CET, February 2, 2015.
SSAB is a Nordic and US-based steel company. SSAB offers value added products and services developed in close cooperation with its customers to create a stronger, lighter and more sustainable world. SSAB has employees in over 50 countries. SSAB has production facilities in Sweden, Finland and the US. SSAB is listed on the NASDAQ OMX Nordic Exchange in Stockholm and has a secondary listing on the NASDAQ OMX in Helsinki. www.ssab.com.
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