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                            Ruukki Construction

                            Sustainable building and construction products and services in Europe

                            Fast facts

                            Number of employees: Approximately 1,800

                            Share or SSAB Group's total EBITDA: 7% (2019)

                            Sales in 2019: SEK 6,510 million

                            Head of Ruukki Construction: Sami Eronen (1971)

                            Share of SSAB Group's total sales: 8% (2019)

                            Ruukki Construction offers sustainable building products and services such as roofs, envelopes and frame structures. Core business segments are non-residential and residential construction. Ruukki Construction has operations in 10 countries and production units are in Finland, Poland, Sweden, Estonia, Lithuania and Ukraine. Ruukki’s customers are active in construction and real estate sectors.

                            Environmentally-aware construction has become normal practice. Alongside environmental awareness, customers’ requirements include the construction of high-quality, healthy buildings. Ruukki is responding to evolving requirements by offering customers the best products and solutions to promote sustainability. Examples of this include increasingly more energy-efficient panels and the Ruukki Life panel, which is mostly made from recycled material which cuts carbon dioxide emissions originating in production by as much as 20%.

                            Market position

                            Ruukki Construction has a strong market position in residential and non-residential construction in Finland, Scandinavia, the Baltic states, Poland, the Czech Republic and Slovakia, which are Ruukki’s key geographical market areas.


                            Demand drivers and trends

                            Construction business cycles impact greatly on demand in Ruukki Construction’s market area. Recent years have seen strong demand in the construction markets in the Nordic countries and in Europe, but growth is now gradually plateauing. Alongside this, demand and the markets are being driven strongly by trends such as digitalization, consumer behavior, urbanization and sustainable construction.
                            Market position

                            Strengths

                            • Recognized brand in core markets and customer segments
                            • Product and service innovations benefitting from advanced technology 
                            • High quality, sustainable, certified products with extensive warranties 
                            • Strong know-how in steel-based construction products

                            Strategy

                            Ruukki Construction has over the past years created a foundation to achieve profitable growth. Following completion of the divestment of the business unit in Russia at the end of 2018, an agreement to divest Ruukki Building Systems has been signed and the transaction is expected to close early 2020. In addition, Ruukki Construction withdrew from business operations in Romania and the United Kingdom, thereby increasing the focus on core market areas: the Nordics, Baltics and CEE. Acquisition of Finnish roof safety product and rainwater system manufacturer Piristeel Oy was made early 2019 to complement the roofing product portfolio. 

                            Ruukki Construction will now develop the remaining core business units, Roofing and Building Envelopes, with SSAB as its main steel supplier. The focus will be on achieving organic growth via an already launched Commercial Excellence program. The program aims to boost the market and channel development within the current portfolio. The synergy potential arising from the acquisition of Piristeel was identified in all core markets and the focus is to fast track synergy realization. Additional complementary mergers & acquisitions will also be considered to strengthen the offering in prioritized segments/markets. 

                             

                            Strategic focus areas and targets

                            • safety 
                            • Grow faster than the general construction market in core markets
                            • Continuous improvement in unit cost and capital efficiency 
                            • “SSAB ONE in Ruukki” implementation
                            • Reach an EBITDA margin of more than 10% in 2022
                             
                            Customers and end users

                            Customers and end-users

                            Core business segments:

                            • Non-residential construction
                            • Residential construction
                            • Industrial construction

                            Ruukki Construction’s customers operate in many activities in real estate and construction. The most important decision groups are:

                            • Architects and structural designers
                            • Main contractors and installation companies
                            • Real estate owners and developers
                            • Residential roofing dealers and tin smiths
                            • House owners

                            Products and services

                            • Steel roofs, rainwater systems and accessories for residential construction
                            • Components such as sandwich panels, load-bearing sheets and façade claddings for non-residential construction
                            • Frame solutions used in non-residential buildings 
                            • Bridges
                            • Design and installation services

                            Ruukki Construction has production units in Finland, Poland, Lithuania, Sweden, Estonia and Ukraine. Ruukki Construction’s major steel supplier is SSAB Europe. There are also external steel suppliers, mainly in CEE and Russia. Competitiveness is secured by market level pricing from all suppliers.

                            Competitors

                            Steel-based building product suppliers Kingspan, Lindab, and locally Areco & many other smaller companies

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