Annual Report 2010 - Scana Industrier ASA

20Annual Report 2010 Scana Industrier ASAManaging director: Jan-Øyvind JørgensenScana Steel StavangerScana Steel Stavanger’s customers are users of special steel and high alloy steel with stringentrequirements for design and documentation. These are mainly found in the oil and gas, marine,energy, mining and general mechanical industries.Scana Steel Stavanger was founded in 1910 and hasproduced steel since 1913. The business is located atJørpeland, near Stavanger, Norway. The company’sbusiness concept was based on the idea of remeltingscrap steel from the local cannery industry and shipscrapping. Scana Industrier bought the company in 1991.Markets and customersScana Steel Stavanger operates in a global market, butthe majority of our customers are in Scandinavia andnorthern Europe. The company competes in the marketof high alloy forged components and complex, cast,special components. Scana Steel Stavanger AS is, inaddition to Scana Leshan in China, the only company inScana with a foundry.In 2010, Scana Steel Stavanger had an export share of65 %, with the main export going to the UK, Swedenand Germany. There is tough competition in the market.Scana’s competitive edge is that we are a relatively smallplayer able to produce small series, where quality anddelivery times are vital. Our deliveries are often specialproducts, custom made to meet the client’s needs.In 2010, the company secured its first steel deliverycontract to the down-hole product “Liner hanger”.With extreme demands for corrosion and mechanicalproperties, this is a product that fits the company’sstrategy of higher alloy and processing degrees inproducts.Furthermore, Scana Steel Stavanger AS has in 2010secured large contracts in the mining industry. Thecontract with LKAB in Sweden to adjust the crushinglevel at the site in Kiruna was important. These deliveriesare due in 2011.Aker Solutions has awarded the company several largeorders for delivering anchor handling equipment, wherethe end customer is, among others, Petrobras in Brazil.Scana Steel Stavanger AS also landed contracts forintegrals with Jack & St. Malo at the end of 2010, to bedelivered spring and summer 2011.ELG Carrs in the UK tripled the order volume of ScanaSteel Stavanger AS from 2009 to 2010 of forgedproducts of the material quality Super Duplex.For Scana Steel Stavanger AS, 2010 started off with7 weak months, followed by 5 months of higher orderintake and activity. The order intake in 2010 was40 % higher than in 2009. The company views 2011with optimism and a higher predictability in the market.Scana Steel Stavanger AS has secured a contract for delivering protective components to the downfall pits at a new crushing level for LKAB’s processing facilities at Kiruna.