SSAB to Invest in Increased Q&T Steel Production Capacity

The investment in quenched and tempered steels production will increase the annual capacity at its Mobile, AL, facility from 300,000 tonnes to 400,000 tonnes.

SSAB is to invest a total of around SEK 1 billion in SSAB Americas’ steel mill in Mobile, AL, to increase production capacity for quenched and tempered (Q&T) steels and to reduce costs. The investments will take place during 2019-2021 and will increase the annual capacity of Q&T in Mobile from 300,000 tonnes to 400,000 tonnes. Taking into account the cost savings, the payback time is estimated to be less than 4 years.

“SSAB is a global leader in Q&T steels and we have largely driven market growth through application development together with customers. Over the past 20 years, we have increased Q&T volumes by an average of 7% a year. There is great market potential as Q&T penetration is still relatively low in, for example, North and South America, where we now plan to increase capacity,” says Martin Lindqvist, SSAB’s President and CEO.

The investment of around SEK 1 billion is targeted at three areas: formatting, blasting & painting as well as shipping capacity. This will eliminate production bottlenecks and increase annual Q&T capacity in Mobile.

In parallel, a new, accelerated cooling system will also be installed and this will improve the potential to grow volumes of more advanced premium products, while reducing the need for alloys. The investment has been designed to include the potential to build additional Q&T capacity through direct quenching similar to the technology currently used at SSAB’s production facilities in Finland and Sweden.