– We can not have a situation in the world where some countries subsidize their companies, who in turn beat out healthy companies in other parts of the world, says Ferbe said.
Since the merger in 2014 with the Finnish Rautaruukki, SSAB has cut off about 1 300 employees. Even before Friday’s notice was the plan to further 650 jobs would be eliminated in 2016.
Now the extended reduction plans significantly. Additional up to 465 employees will go. Mainly affected operations in Oxelösund and Borlänge, where it is today, SSAB has had production for over 100 years.
– This feels like a blow to the region. SSAB’s a large employer not only for the municipality of Oxelösund but also for Nyköping and the surrounding region, says Catharina Fredriksson (S), Mayor of Oxelosund, which even before the cutbacks has an unemployment rate of eleven percent.
SSAB’s interim report shows a loss before tax of more than one billion and a försäljningsras during the last quarter. But there are bright spots in the report: The cash flow is positive and net debt has been reduced. And during the first quarter of this year expects CEO Martin Lindqvist, with sales volumes increasing in all markets.
Equity Investors chose to take note of the positive signals – shares rose sharply on the stock exchange. Analysts warn, however, that SSAB is still hard in debt and that the company, if the market does not turn, could ultimately be forced to strengthen finances through a rights issue.
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