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Creating market for growth · Global market leader in high-strength steels 12.6 bn 1 Mton 11.8%...
Transcript of Creating market for growth · Global market leader in high-strength steels 12.6 bn 1 Mton 11.8%...
Creating market for growth P-O Stark EVP & Head of SSAB Special Steels
PUBLIC
Agenda
► Our position in the market
► Market environment and outlook
► Our focus going forward
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Global market leader in high-strength steels
12.6 bn
1 Mton
11.8%
Sales in 2016
Shipments in 2016
EBITDA-margin in 2016
►Global market coverage
►Wear, structural, protection and tool steels
►World’s widest product portfolio
►World leading premium product brands
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Branded products – competitive advantage
Undisputed market leader for hard and tough steel – uptime and payloads
High-strength, high-performance steel – payload and workshop properties
Protection steel for increased safety
The premium pre-hardened engineering and tool steel for increased productivity
Distributor brand to increase market coverage
Area of use Brand Flexible production model – 9 Quenching lines
Oxelösund
QL 1-4
Raahe
QL 8-9
Borlänge
QL 7
Mobile
QL 5-6
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Leading products serving a variety of customer segments
Heavy plate
Strip
Hardox and Raex
Strenx &
Other
Refers to the share of SSAB Special Steels total shipments in tonnes
Lifting
Recycling
Trailers and body builders
Steel Service Centers
Agri, forestry and fishing
Raw material handling
Construction machinery
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Global trends drive demand for Special Steels
Sustainability
Productivity
Infrastructure
Resource efficiency Energy efficiency Lower emissions Durable products Recycling
Total cost of ownership (TCO) Maximize payload and lifting capacity Improve fuel efficiency Longer life span Longer service intervals
Global urbanization Significant need of re-building infrastructure in US and EU
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Direct and stock sales – 10,000 customers globally
North America 33%
South America 9%
TRMEA 7%
North & East Europe 20%
Western Europe 23%
APAC 8%
Sales split (tonnes) Highly specialized sales force
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Leverage potential in business model Upgrading customers to more advanced offerings
Profitability leverage of different sales (illustrative)
HARDOX
RAEX
Non-branded Q&T
DIRECT MILL SALES
LOCAL STOCK SALES
SERVICE OFFERING
Base
+40%
+20%
+20%
SERVICE MODEL UPGRADE
PR
OD
UC
T U
PG
RA
DE
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Agenda
► Our position in the market
► Market environment and outlook
► Our focus going forward
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Expanding the Special Steels market
Penetration of Q&T plate as % of total plate demand
Western Europe
7-8% North America
4-5%
Emerging markets
<2%
SSAB assessment 10 PUBLIC
Outlook for key special steel segments
Yellow goods
Trailers and body builders
Recycling
Raw Material Handling
Agriculture, forestry and
fishing
Western Europe
Turkey, Middle East,
Africa APAC
Lifting
North & Eastern Europe
US & Canada
Central & South
America
Positive Negative Stable
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Strong market position for majority of segments and regions
Yellow goods
Trailers and body builders
Recycling
Raw Material Handling
Agriculture, forestry and
fishing
Eastern Europe/CIS
Western Europe
Turkey, Middle East,
Africa
Asia / Oceania
Lifting
North Europe
US & Canada
Central & South
America
50%
Market position Very strong Strong Moderate
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Agenda
► Our position in the market
► Market environment and outlook
► Our focus going forward
13 PUBLIC
www.ssab.com/ecoupgraded Reference document: Environmental evaluation of steel and steel structures – a handbook produced within The Steel Eco-Cycle project, Jernkontoret, 2013.
www.ssab.com/ecoupgraded
SSAB EcoUpgraded Together with our customers, SSAB continually upgrades steel and equipment designs. SSAB EcoUpgraded saves CO2 both in steel production and during the full lifetime of the machine.
From the CO2 payback time and onwards, every extra hour brings additional savings.
Savings on CO2
32 1.3 9,700
TONS/LIFETIME YEARS L/LIFETIME
*) Valid for the whole tractor-trailer vehicle.
Productivity and sustainability – Case EcoUpgraded
Upgrade: Hardox 400 -> Hardox 450
Weight reduction: 28.3 -> 27 tonnes = 5%
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Upgrading and mix shift – tools to fill the gaps
Battlefield X-Days
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Cement
Strenx Sheet
Small lifting
Concrete
Agri- cultural
Mining
Road- buildning
Tippers
X-Days 2016
► 20 events during 2016
► 8 different topics
► 230 particpants
Focus segments
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Sub-suppliers
OEMS
STOCKS
END-USERS
Marketing targets end-users
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End-user focus through after market and brand programs
Hardox In My Body
► Brand program to reach the end-user with the value Hardox provides
► No. of members: 419
► Brand program to reach the end-user with the value Strenx provides
► No. of members: 72
► Network for sharing best practices
► No. of members (YTD): 303
► Certification of work shops for providing high quality parts made of Hardox plate
► Contribute both to higher volume of Hardox plate and to create the market
Hardox Wearparts
My Inner Strenx
>2 million/month social media
views YTD
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Strategic products New product areas
►Oxelösund produces very clean steel (with extremely low degree of pollutants and high quality)
► Improved workshop properties, formability, cutting, welding
► Improved toughness and low temperature service
►Suitable for extreme applications
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Strategic products New HARDOX 500 TUF
►Hardox 500 TUF delivers exceptional strength, hardness and toughness in one and the same wear plate.
►Combines the best properties from Hardox 450 and Hardox 500 - a wear plate that has no real competition on the market
►Excels in handling heavy and sharp rocks, steel scrap and in demolition
►Several end-user benefits, e.g. for a Tipper
− Reduced thickness from 8 to 6 mm, 25% weight reduction
− Increased payload by 500-750 kg/cycle
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Upgrading/Strategic products Learning from each other
Cross- Member Ground Engagement Tools Weld on Heel Shrouds
Application
Upgrade
Result
Hardox 550 1 ½” Hardox 550 1 ½” and 2” Strenx CRM 110 XF
Lighter and more cost effective Cost reduction of ~50% Extended service life and lower cost
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Global sales and distribution coverage 80 sales stocks servicing 130 different countries
SSAB stock sales
95
Service center
Sales stock
1. Increase penetration from existing stocks
2. New stock locations
Germany
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1. Increase penetration from existing stocks
2. New stock locations
Grow in emerging markets – substantial potential
Emerging markets <2%
Penetration of Q&T plate as % of total plate demand
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Local go-to-market model – Central America
► Experienced sales manager
with entrepreneurial approach
► Extensive training
► X-days and technical sales resources
► Local organization close to customer builds long-term customer confidence
Central America Special Steel sales, tonne
10,800 9,800
13,500
16,500
19,950
2013 2014 2015 2016 2017 FC
+22%
+38%
+21%
Key success factors
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Growth target
World leading products
Flexible production capacity
Continuous improvemens
Upgrading Battlefield X-days
Creating the market Global market coverage
Sustainability
Productivity
Infrastructure
1,008
1,350
2016 2020 Target
1,350 kton by 2020
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