By Dominic Chopping
STOCKHOLM--Swedish steelmaker SSAB plans to increase the share of premium products it sells as it targets higher earnings in the coming years.
The company said it is aiming to deliver more of its advanced steel grades, decarbonized steel, and services and solutions to increase the overall share of premium products and services to 65% of the group's total shipments by 2030 and to 75% by 2035.
That compares with 55% currently and will result in higher and more stable profitability, it said.
SSAB said special steels shipments are expected to increase by around 5% a year until 2030, while the SSAB Europe business will gradually increase its share of premium products as it aims for 1 million metric tons of shipments of decarbonized steel in five years, creating potential for premium pricing.
It is also targeting growth in value-added services and solutions.
The new targets were presented ahead of an investor event Tuesday.
"Over the next five years, our focus is to execute investments according to plan and budget while we continue to strengthen our premium offering from existing mills," Chief Executive Johnny Sjostrom said in a statement.
The plans should lift earnings before interest, taxation, depreciation and amortization to an average of around 23 billion kronor ($2.42 billion) after 2030 from an average of 14 billion kronor in the prior cycle, he said.
The improvement will be driven by a growing premium offering, efficiency gains and a more competitive cost structure, he added.
SSAB is converting steel production at a plant in Sweden while also building a new mill in the country to produce decarbonized steel by using new electric arc furnaces among other measures. It will implement a similar move at its Finnish mill, with timing dependent on raw-material availability, financial capacity and general market conditions.
The company reiterated other financial targets, including to deliver an industry-leading Ebitda margin compared to peers, a net gearing ratio of between minus 20% and plus 20%, and a dividend of 40% of profit after tax.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
November 04, 2025 03:25 ET (08:25 GMT)
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