The world's number one steel producer ArcelorMittal has announced the formation of a 50:50 joint venture involving its wholly owned steel service center subsidiary SSC Sverige and Swedish-based BE Group's Borlänge facility.
The combination of the ArcelorMittal SSC Sverige facility in Karlstad and of the facility belonging to the BE Group in Borlänge, which is subject to review by the competition authorities, forms the third biggest player on the Swedish market with a market share of 20 percent, shipments of 120,000 mt and a turnover of more than €80 million.
The joint venture targets growth in the Swedish market for thin sheets, improved service to customers as well as increased value creation, increased effectiveness in a larger structure and strengthened and stabilized long-term profitability.
ArcelorMittal SSC Sverige is a facility which processes 60,000 mt per annum of cut-to-length and slitted products, including IB Andressen in Denmark, for general industry, automotive, construction and stockists. Meanwhile, BE Group is one of northern Europe's leading trading and service companies within steel, stainless and aluminum, processing also around 60,000 mt a year of cut-to-length and slitted products, mainly for general industry.
Commenting on the new JV, BE Group President and CEO Hakan Jeppsson said, "The market for cutting (to length) and slitting of thin sheets in Sweden is large and important for BE Group on a long-term basis. By merging our business in Borlänge with ArcelorMittal's in Karlstad, an important step is taken on a market that needs to be consolidated."