As we noted yesterday, flats and specialty steels producer SSAB is in talks with Tata Steel over potential acquisition of the Indian group’s IJmuiden integrated plant in the Netherlands, the Swedish group confirmed.
“SSAB has participated in several different discussions concerning consolidations in the European steel industry. The discussions with Tata are on-going but no decisions have been made,” SSAB said Nov. 13.
“There can be no certainty that any transaction will materialize, nor as to the terms of any such potential transaction. Further announcement will be made in due course,” the Swedish group added.
Sign up today for Gunpowder, MetalMiner’s free, biweekly e-newsletter featuring news, analysis and more.
SSAB’s product assortment includes plates, tubes and special steels. The group’s Luleå plant in northern Sweden produces steel and casts slab for rolling and coating at its Borlänge plant further south in the country.
The company also produces specialty steels at its Oxelösund integrated plant, south of capital city Stockholm, where it also rolls them into finished products.
SSAB acquired Finnish steelmaker Ruukki in 2014. In addition, the group produces plates and hot-rolled coil in the United States via one electric arc furnace at Alabama and at Iowa with a total capacity of 2.4 million tons per year.
SSAB’s IJmuiden interest
SSAB has eyed IJmuiden for at least a year, one analyst familiar with the situation told MetalMiner.
Poor market conditions and the impact of the coronavirus have made IJmuiden loss-making in 2020. However, the analyst noted the Dutch plant is in good condition. He also pointed to SSAB’s experience in flats as a useful synergy.
“I don’t see any particular problems,” the analyst added about a potential acquisition by the Swedish group.
Tata’s IJmuiden works is 40 kilometers northwest of Netherlands’ capital city Amsterdam.
The site has two blast furnaces that can produce up to 6 million tons per year of pig iron and a convertor shop with a 6.5 million tons per year of crude steel capacity.
IJmuiden can roll hot-rolled coil in 1-2 mm gauges. The plant can also produce cold-rolled and hot-dipped galvanized coil. The plant also has an annealing and tinning line.
The MetalMiner 2021 Annual Outlook consolidates our 12-month view and provides buying organizations with a complete understanding of the fundamental factors driving prices and a detailed forecast that can be used when sourcing metals for 2021 — including expected average prices, support and resistance levels.