Swedish steelmaker SSAB's discussions with Tata Steel concerning the possible acquisition of the latter's IJmuiden steel mill have resulted in no deal being struck between the two companies. After deeper analysis and discussions, SSAB claims there were 'limited possibilities' to integrate the Tata facility into SSAB's strategic framework.
"We have carefully evaluated Tata Steel IJmuiden and have concluded that an acquisition would be difficult for technical reasons. 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," said Martin Lindqvist, president and CEO at SSAB.
“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,” he added.
SSAB is leading the transformation of the steel industry to fossil-free production. The group’s goal is to be the first in the world, in 2026, to supply fossil-free steel to market and to be a fossil-free company by 2045.
The rationale behind the discussions concerning Tata Steel IJmuiden was based on the clear desire SSAB customers for a strong supplier of a broad range of fossil-free steel. Through an expanded range of steel products, which in the long term can be converted to fossil-free products, SSAB can become a more comprehensive supplier of fossil-free steel to existing and new customers 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,” Lindqvist said, adding that he was convinced SSAB has an important role to play in the industry's continued transformation and regeneration.