Steel maker SSAB to cut almost 300 jobs in Finland
23 October 2015
SSAB has laid out plans to shed up to 295 positions in Finland.
The Stockholm-headquartered steel manufacturer announced on Thursday that it will launch consultative negotiations with personnel employed at its steel mill in Raahe and its construction division, Ruukki Construction.
The negotiations will affect all of the 2,455 staff members at the steel mill and are expected to result in the reduction of up to 210 positions in Raahe. The negotiations will also affect the majority of personnel employed in the construction division and are expected to result in the reduction of up to 85 positions.
The steel manufacturer stressed that some of the reductions will be implemented through the non-renewals of fixed-term employment contracts and voluntary pension arrangements.
SSAB operates two manufacturing plants in Finland – one in Hämeenlinna and one in Raahe – following its merger with its Finnish rival, Rautaruukki, last year.
The profitability of the steel manufacturer crumbled in the third quarter of the year as it posted operating losses, excluding items affecting comparability, of 191 million Swedish krone, or 20 million euros. Its quarterly turnover of 1.44 billion euros similarly fell roughly 100 million euros short of the expectations of analysts and investors interviewed by Reuters.
Martin Lindqvist, the managing director of SSAB, pointed out that the result is primarily attributable to sliding profit margins in the United States, the devaluation of the Brazilian real and delays in the re-lining of its blast furnace in Luleå, Sweden.
SSAB reported operating losses of some 127 million euros in 2013 but dug itself out of the red the following year, posting operating profits of 95 million euros.