20<strong>Annual</strong> <strong>Report</strong> <strong>2010</strong> <strong>Scana</strong> <strong>Industrier</strong> <strong>ASA</strong>Managing director: Jan-Øyvind Jørgensen<strong>Scana</strong> Steel Stavanger<strong>Scana</strong> 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.<strong>Scana</strong> 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. <strong>Scana</strong> <strong>Industrier</strong> bought the company in 1991.Markets and customers<strong>Scana</strong> 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. <strong>Scana</strong> Steel Stavanger AS is, inaddition to <strong>Scana</strong> Leshan in China, the only company in<strong>Scana</strong> with a foundry.In <strong>2010</strong>, <strong>Scana</strong> Steel Stavanger had an export share of65 %, with the main export going to the UK, Swedenand Germany. There is tough competition in the market.<strong>Scana</strong>’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 <strong>2010</strong>, 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, <strong>Scana</strong> Steel Stavanger AS has in <strong>2010</strong>secured 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.<strong>Scana</strong> Steel Stavanger AS also landed contracts forintegrals with Jack & St. Malo at the end of <strong>2010</strong>, to bedelivered spring and summer 2011.ELG Carrs in the UK tripled the order volume of <strong>Scana</strong>Steel Stavanger AS from 2009 to <strong>2010</strong> of forgedproducts of the material quality Super Duplex.For <strong>Scana</strong> Steel Stavanger AS, <strong>2010</strong> started off with7 weak months, followed by 5 months of higher orderintake and activity. The order intake in <strong>2010</strong> was40 % higher than in 2009. The company views 2011with optimism and a higher predictability in the market.<strong>Scana</strong> 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.
Managing director: Sten IsraelssonSCANA STEEL AB<strong>Scana</strong> Steel AB is a small, prospering and cost efficient real estate firm that manages <strong>Scana</strong>’sreal estate in Karlskoga, north-east of Väneren in Sweden.21<strong>Annual</strong> <strong>Report</strong> <strong>2010</strong> <strong>Scana</strong> <strong>Industrier</strong> <strong>ASA</strong>The company owns 35,000 m 2 of real estate in total.This mainly consists of industrial premises, withadditional office and service areas. The business islocated on the old industrial site of Bofors, and theproperties were acquired in 1997, when <strong>Scana</strong> bought apart of Bofors AB.After structural changes in the defence industry, a needhas arisen to see new activity in the halls; to replace theexisting tenants’ lessened need for rented area.Logistics and geographyFrom a Swedish perspective, Karlskoga is locatedalmost in the middle of a centre for logistics. And withthe improved road E18 towards Örebro and Karlskoga,Karlskoga today represents a strong, competitivealternative to other closely situated places.Business has been positive in <strong>2010</strong> for <strong>Scana</strong> Steel ABand its tenants. Especially the logistics companies haveseen a positive development and are asking for larger areas.ServicesToday, six external companies rent areas for a total of23,000 m 2 . The remaining areas are rented and utilisedby <strong>Scana</strong> Steel Booforge AB.Today, two companies are operating on the premises,on a surface area covering just over 15,000 m 2 .One of these companies are KGA Logistik AB, ownedby Galatea Spirits AB. KGA Logistik AB is one of the fivelargest distributors of beer, wine and spirits in Sweden.