Steel maker SSAB has implemented a series of actions in response to the impact of the Coronavirus Covid-19.
Primarily the measures have been to reduce the spread of the virus and protect its workforce, the company said. The Swedish producer of high-grade steel used in crane manufacturing described the measures as short-term. It is also accommodating reduced demand and said it needed to make financial savings. The total saving was expected to be more than SEK 1 billion (US$ 91.5 million).
In Sweden, SSAB said it made a framework agreement with unions on a short-time working allowance and in Finland employer-employee negotiations have been initiated. Cost saving measures were also being implemented in other countries, the company stated.
Martin Lindqvist, SSAB president and CEO, said in a statement, “The short-term actions to reduce cost will imply a temporary negative effect on the salaries for many employees. The members of the SSAB Group Executive Committee have therefore decided to reduce their own salaries by 10 percent from April 1.
“We have to adapt and adjust our business to the situation. Plans are being implemented in all parts of SSAB in order to address the situation in the best way possible and to secure our long-term competiveness.”
Steel production in Borlänge and Hämeenlinna will be closed for one week a month, in April and May, possibly longer. Output from the blast furnaces will be reduced in line with market demand, the company said.