SSAB divests IPSCO Tubulars for USD 4,025 million in cash


SSAB divests its North American tubular operations (“IPSCO Tubulars”) to Evraz for
USD 4,025 million in cash.
• The transaction allows SSAB to better focus on and more rapidly develop its high-strength steel niche
• SSAB retains the majority of IPSCO’s steel production capacity and also the full synergy potential declared at the time of the acquisition of IPSCO
• Proceeds to be used for debt reduction. SSAB’s net debt/equity ratio pro forma 31 December 2007 decreases from 148% to 62%

SSAB today announces an agreement with Evraz Group S.A. (“Evraz”) to sell SSAB’s North American Tubulars operations, IPSCO Tubulars, for USD 4,025 million on a debt and cash free basis. IPSCO Tubulars was acquired as part of SSAB’s acquisition of IPSCO in 2007 and had sales of USD 2,4 billion and EBITDA of USD 0,4 billion in 2007. No capital gain or loss is expected from the transaction.
The transaction is expected to close in the second quarter of 2008 and is subject to approvals from US and Canadian regulatory authorities.
The agreement between SSAB and Evraz involves the sale of 12 tubular locations, including, the Regina and Koppel steel mills, that directly supply the tubular operations, the Regina coil processing facility, and related scrap facilities. IPSCO Tubulars has approximately 3,250 employees.
SSAB will retain the majority of the steel production capacity it acquired as part of its acquisition of IPSCO, including steel mills located in Mobile (Alabama) and Montpelier (Iowa) together with four cut-to-length facilities. In aggregate, these facilities have an annual capacity of approximately 2,5 million tonnes of crude steel production. The retained units have approximately 1,050 employees.
The IPSCO brand is closely associated with the tubular business and is included in the transaction. The steel operations retained within SSAB will operate as a Division within SSAB. SSAB will retain the right to use the IPSCO brand during a transition period.
“This transaction allows us to focus on our core business – to be a global leader within our high strength steel niches. We can further grow and develop our steel operations and expand into new markets. IPSCO Tubulars will get an owner with an interest and focus in the tubular business”, says Olof Faxander, President and CEO of SSAB.

About SSAB
SSAB is a leading producer of high-strength steel. The group’s steel operations consist of three divisions - the Strip Products Division (main centres are Borlänge and Luleå), the Plate Division (Oxelösund) and the North American Division as well as two subsidiaries - Plannja representing processing and Tibnor which is the group’s trading company. In 2007, the group’s turnover was approximately SEK 48 billion. SSAB employs approximately 13,000 employees in operations or offices in over 40 countries and a worldwide sales presence.

About Evraz
Evraz Group S.A. is one of the largest vertically-integrated steel and mining businesses. In 2007, Evraz Group produced 16.3 million tonnes of crude steel. Evraz Group's principal assets include three of the leading steel plants in Russia: Nizhny Tagil (NTMK) in the Urals region and West Siberian (Zapsib) and Novokuznetsk (NKMK) in Siberia, as well as Palini e Bertoli in Italy, Evraz Vitkovice Steel in the Czech Republic, Evraz Oregon Steel Mills and Claymont Steel headquartered in the USA. Its fast-growing mining businesses comprise Evrazruda, the Kachkanarsky (KGOK) and Vysokogorsky (VGOK) iron ore mining complexes, Yuzhkuzbassugol company and an equity interest in the Raspadskaya coal company. The mining assets enable Evraz Group to be a vertically-integrated steel producer. Evraz Group also owns and operates the Nakhodka commercial sea port, in the Far East of Russia. Evraz vanadium operations comprise Strategic Minerals Corporation, USA, and Highveld Steel and Vanadium Corporation, South Africa.

Advisers and Counsel
Deutsche Bank is acting as exclusive financial advisor to SSAB. White & Case is acting as legal counsel to SSAB.

Press and analyst conference, and webcast details
There will be a presentation for media and analysts at 10.00 am CET at World Trade Center (WTC), Kungsbron 1, Stockholm in Conference room: “Stockholm”, which will be webcast live on SSAB’s website at www.ssab.com. If you want to participate in the press conference via telephone or if you want to ask questions during the press conference, please dial the following numbers: +46 (0)8 505 598 53 (Sweden), +44 (0)20 3043 2436 (UK), +1 866 458 40 87 (USA). Questions regarding webcast, please contact Heidi Wendt, phone: +46 (8) 45 45 756.

Further details regarding the transaction is included in the pdf-version of the press release.

About Us

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.