Production breakdown in Oxelösund to result in further delay
On December 15, a production breakdown occurred at SSAB Special Steels’ plant in Oxelösund. The breakdown occurred with restarting the rolling mill after the planned annual maintenance outage. The breakdown was due to a short circuit in a transformer. Since the transformer type is tailored for the rolling mill in Oxelösund and is not available at the supplier’s, the transformer must be renovated. This means that the unplanned outage will be longer than earlier announced.
“We will naturally do everything we can to offset the negative impacts. The hardening lines in Oxelösund can be supplied with plate from other sites and where possible we can reallocate the volumes to other production sites. Nevertheless, we cannot escape the fact that this is an exceptional event and will have a negative impact on customer deliveries. This is something I deeply regret,” said Per-Olof Stark, head of SSAB Special Steels.
SSAB Special Steels now plans to restart the rolling mill in mid-January. Taking advantage of SSAB’s flexible production system, the net production and delivery loss is expected to total around 40,000 tonnes. This will impact the result in the fourth quarter of 2016 and the first quarter of 2017. The initial estimate, communicated on December 16, was that the breakdown would imply a production and delivery loss totaling around 25,000 tonnes.
For further information, please contact:
Per Hillström, Head of Investor Relations, per.hillstrom@ssab.com, phone: +46 70 295 2912
SSAB AB is obliged to make this information public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on December 20, 2016 at 15:00 CET.
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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