Annual Report 2010 - Scana Industrier ASA

14Annual Report 2010 Scana Industrier ASAManaging director: Ingvar WinboSCANA STEEL BJÖRNEBORGScana Steel Björneborg refines steel in an integrated chain that includes steelworks, heat treatment,forge with a 4,500 tonne press and a well-equipped machining workshop.The company was founded 354 years ago, making itone of the group’s most venerable companies – not tomention one of the oldest forges in the world.Due to low demand and high pressure on prices,following a financial recession and an economicdown turn in the heavy steel industry, the company’sorder reserve and turnover has decreased. But witha number of cost cutting measures, the result is stillpositive.Markets and customersScana Steel Björneborg exports 70 % of its turnover,directly or through other companies in the group. Thelargest market is Europe, but export also goes to theUSA, Asia and other parts of the world.The entire steel industry has throughout 2010 beenfaced with a low demand and increased competitiondue to a much larger capacity in both Europe and Asia.As a consequence, the organization and crew of thecompany has been adjusted accordingly and marketinghas been intensified. Scana Steel Björneborg has,adhering to our long-term strategy, continued our workon increasing the refinement of our products. The resultfor 2010 is an increasing number of customers orderinga higher number of finished products, especially in themarine business area.In 2011, a slight increase in market demand is expected.The business as a whole will experience an increasingforge capacity in the world. Scana Steel Björneborg willcontinue to focus on established customer relations,cooperation with other Scana companies and also onnew markets.Investments for the futureIn the course of the recent three years, large,productivity-increasing investments have been carriedout, and the majority were concluded during thesummer of 2009. Investments for increased productioncapacity, more advanced testing equipment and abetter environment, has continued in 2010 as well. Themost important completed investments in the course of2010 were:• Upgrades of lathes for the machining workshop• Continued development of the steelworks, part 2,through purchase of a new transformer. Installation ofthe arc oven transformer is due during summer 2011,and for ovens some time during summer 2012. Theseinvestments will increase capacity to 115,000 tonnesannually.• Upgraded equipment for heat stability testing,completed and run-in. With this test equipment, axlescan be tested at high temperatures, meeting theparticularly high demands of energy customers.• New CTOD test equipment for the testing of steel,especially for customers in oil and gas. Having thismachine in-house shortens the lead-time for e.g.risers with several weeks.• New pendulum impact tester increasing safety andcapacity.• New cooler intake and new dam hatches minimize therisk of flooding and cooler liquid breakdowns.• Equipment to ensure that no radioactive materials areled onto the property.