SSAB gives notice of redundancy regarding 210 employees in Borlänge

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.

For Further information, please, contact

Taina Kyllönen, Head of Group Communications, tel. +358 20 592 9040
Marie Elfstrand, Head of PR and Media relations, tel. +46 8 454 5734
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.