Swedish specialty steel producer SSAB has announced its plans for operational cutbacks at its Virsbo production unit in Sweden. 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 expected to be profitable in the future.
According to SSAB's announcement, 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 €150 million).
Negotiations affecting approximately 65 out of the 100 employees at the plant in Virsbo will be commenced with the employees' union representatives, according to SSAB.