New quenching line in Oxelösund

8/17/1999 7:53 AM EST

SSAB's investments in quenched steels continue. Today, SSAB's Board of
Directors approved an investment of SEK 550 million in another quenching line
in Oxelösund. The new line is expected to be brought into operation at the end
of 2001.

- SSAB's future lies in developing into a specialty steels company within the
commercial steel sector, says SSAB's CEO Torsten Sandin. During the past 3-4
years, we have invested approximately 3 billion kronor in our steel operations
in order to create conditions for continued growth in our niche products -
high-strength sheet in the sheet sector and quenched steels in the plate
sector.

- We have come furthest in our niche orientation in the plate sector, adds
Torsten Sandin. The investment in a second quenching line in Oxelösund will
make it possible for us to meet an increasing demand for quenched steels in a
thinner dimensions sector.

SSAB Oxelösund is the world's leading producer of quenched steels. The global
market share for its products amounts to almost 20%. The products are marketed
throughout the world under the HARDOX and WELDOX trade marks. They are used
where high abrasion and strength are required together with good weldability
and formability as well as low weight.

- We see continued good growth possibilities for quenched steels says Dan
Johansson, the president of SSAB Oxelösund. SSAB Oxelösund has fine products
with very strong trade marks. Profitability for quenched steels, which account
for approximately two thirds of plate sales, is stable and positive. We
possess expertise in product and market development and have very good
customer relations. During recent years we have also greatly expanded the
international marketing organisation.

- By now constructing a second quenching line, we can broaden the product
range and increase sales further. Especially interesting is the market for
thinner quenched steels, Dan Johansson adds. This type of plate is used, among
other applications, in mobile cranes, truck cranes, cement pumps, cement
mixers, dumper bodies, containers and barges.

The new quenching line is being built in conjunction with the finishing line
for thinner dimensions of plate that was brought into operation last year.
Through this investment, SSAB Oxelösund will possess a complete line for the
quenching, formatting, blasting, painting and packaging of plate. The
investment amounts to MEK 550 million and the new line will be brought into
operation at the end of the year 2001. Through the new quenching line
relieving the load on the existing line, the capacity for thicker dimensions
of quenched steels will also be increased. In total, the quenching capacity
will increase by approximately 50%.

For further comments please contact Dan Johansson, President SSAB Oxelösund,
Telephone +46 155-254229.