Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you provide an update on the strike situation in Finland and its potential impact on Q1 earnings? A: The strike in Finland is ongoing and is planned to last six days. We are trying to minimize its impact, similar to previous strike incidents. However, it is likely to have some effect on Q1 earnings, comparable to past strikes.
Q: Is there a possibility to postpone or scale down the Lule investment if the market environment remains weak? A: While the Lule investment is strategically important, we have the flexibility to postpone or delay it if necessary due to market conditions. However, our intention is to proceed with the plans as they are crucial for our strategic goals.
Q: Can you explain the rationale behind building two electric arc furnaces with a combined capacity of 2.5 million tonnes in Lule? A: The system is designed for 2.5 million tonnes, with half sent to Borlange for processing and the other half used for the Cold Mill complex. This setup allows us to produce specialty and premium grades, which are in high demand, especially in the automotive segment.
Q: How do you view the current market situation for special steels, and do you expect to grow volumes in 2025? A: There is a seasonal effect, but we have maintained our market share despite higher prices than competitors. If interest rates decrease and the construction segment recovers, we are optimistic about volume growth in 2025.
Q: What is the expected return on investment for the Lule project, and how does it compare to maintaining the current system? A: The investment in Lule is attractive when considering the avoided costs of maintaining the current system, which would require significant investment. The new system offers modern, efficient technology and positions SSAB Europe as a supplier of unique customer value, making the investment decision sensible.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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