SSAB plans to downsize at the production unit in Virsbo
SSAB has today given notice of operational cutbacks at the production unit Virsbo. The change entails the discontinuation of line pipe production in Virsbo, while the production of expandable rock bolts will continue. With this structural change, SSAB is optimizing and streamlining production in Virsbo to focus on the product that is considered to be profitable in the future.
Negotiations will be commenced with the employees’ union representatives. The negotiations affect approximately 65 out of the 100 employees at the plant in Virsbo.
“It is, of course, extremely unfortunate to have to make this announcement,” says Janne Pirttijoki, Head of Tubes and Sections within the SSAB Europe division. “We’ve carried out an extensive analysis of production in Virsbo and will continue to focus on expandable rock bolts, where we see a good business potential. We will offer support to those employees affected by this change.
This measure represents part of the previously announced efficiency and synergy program resulting from the merger of SSAB and Rautaruukki that took place last year. The program involves, among other things, cost synergies totaling SEK 1.4 billion (approximately EUR 150 million).
For more information, please contact
Tommy Löfgren, Head of Communications SSAB Europe, +46 70 525 9414
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.