Scana Steel Stavanger

Managing director: Jan-Øyvind Jørgensen
Turnover: NOK 490 million

Scana Steel Stavanger operates in a global market, but the majority of its customers are located in Scandinavia and North Europe. The customers are users of special steel and high-alloy steel with stringent requirements for design and documentation. These are mainly found in the offshore, marine equipment, mining and general mechanical industries.

Scana Steel Stavanger was founded in 1910 and has produced steel since 1913. The business is located at Jørpeland outside Stavanger, Norway. The company’s business concept was based on the idea of remelting scrap steel from the local canning industry and ship scrapping. Scana Industrier bought the company in 1991.

The company’s competitive strength is unique in that it can produce small series of high-alloy customised steel components, both from forged and cast products. As at 31st December 2008, the company had 231 employees and a turnover of NOK 490 million.

Market and customers

In 2008, Scana Steel Stavanger had an export level of 67 per cent with the bulk of exports going to the UK, Sweden and Germany. There is tough competition in the market. However, the fact that the company is a relatively small player is actually a competitive advantage in the European market as Scana Steel Stavanger has the advantage of operating in specific niches with small series, where quality and delivery time are vital.

In 2008 the company landed the first offshore contract in Brazil, with Petrobas as the end customer. Brazil will be an important market in the future.

Scana Steel Stavanger has seen a reduction in demand as a result of the recent worldwide financial crisis. The company has implemented measures to increase sales in other segments and to reduce costs. This will reinforce the company’s competitiveness when market conditions improve.

Products

Scana Steel Stavanger’s main production is forged or cast items in different steel qualities and degrees of completion. The three key business areas are cast steel up to 12 tonnes, forged steel (valve spindles and shafts) and road clearance equipment for snow ploughs.

Typical products delivered by the company are:

Forged steel

• Forged parts 
• Form-forged stainless steel shafts 
• Valve spindles for large diesel engines

Cast steel

• Cast parts up to 12 tonnes 
• Vessel propellers and water jet products
• Wear-resistant goods for the mining industry 
• Chain stoppers

Road clearance

• Joma 6000 
• Wear-resistant goods 
• Drilling alloy goods

Scana Steel Stavanger aims to be at the forefront of the development of steel metallurgy and foundry techniques. One initiative in laying the foundation for this is to further develop the smelting plant, where we have invested in new special furnaces and equipment to further increase the quality of steel.

Scana Steel Stavanger works primarily with a large number of short-term contracts. In 2008, we have delivered to a number of offshore projects, among them equipment for nine rig projects for Aker Pusnes.