SSAB, leading producer of high-strength steel sheet, is undertaking a cost savings program that will reduce its workforce by 1300 and operating costs by at least SEK 1 billion per year. The company cites the severe downturn in the steel market and uncertain prospects for 2009 as factors in their decision. The savings program will be implemented in 2009 and the full impact is expected to be felt in 2010.
About 200 external consultants and 1,100 of the company's own employees will be affected. 450 workers within the Tunnplåt Division and 350 within Grovplåt Division will be affected. The daughter company Plannja (see separate factsheet) accounts for 150 of the redundant employees in Sweden and Denmark (120 in Sweden and 30 in Denmark). Plannja intends to streamline their production and relocate some of its production to Småland, Sweden. Steel retailer Tibnor (see separate factsheet), where SSAB holds 85% of the ownership, carries out a staff reduction of 150 workers, where 50 will be redundant in Malmö as a result of a closure of the site there. The other 100 works at the Tibnor's other sites in Sweden. The total cost of all the restructuring measures within SSAB are estimated to cost SEK 550 MSEK. The Group's steel operations consist of three divisions - Strip Products Division (main centres are Borlänge and Luleå), Plate Division (Oxelösund) and North American Division (Mobile and Montpelier) and two subsidiaries - Plannja representing processing and Tibnor which is the group's trading company. In 2007, the Group's turnover was approx. SEK 48 billion. The number of employees is 10 000 in operations or offices in over 40 countries.