Decades of partnership in the steel industry supply chain

Our collaboration between Ahola Transport and Ovako goes back to the early 1990s. The partnership is based on high delivery reliability, mutual trust and continuous development work. In the future, our collaboration will focus particularly on efficiency, responsibility and the opportunities brought by the industry’s ongoing transformation.

 

Ovako is a manufacturer of engineering steel, and one of the largest users of scrap metal in the Nordic countries. Recycled steel scrap makes up 97% of the raw material used at the company’s three mills in Imatra, Hofors, and Smedjebacken.

 

The company takes a long-term approach to its operations, aiming to reduce the environmental footprint across all product categories. For example, Ovako has reduced its emissions significantly since 2015, reflecting the fact that low-carbon steel is rapidly becoming a customer requirement. Alongside sustainability, occupational safety and supply chain reliability remain key focus areas in the company’s operations.

 

Transports play a crucial role in the steel industry’s competitiveness

 

An efficient supply chain is a critical success factor for Ovako. Ensuring that their high-quality, sustainable steel reaches customers on time makes the transportation stage a vital part of the overall service. Transport is also a key customer service touchpoint, so we ensure that the quality of our logistics matches the quality of Ovako’s products.

 

The significance of the transport partner extends far beyond traditional logistics. The partner’s role is to ensure that the supply chain flows predictably and without interruptions under all circumstances. This requires not only cost-effectiveness but also reliability, flexibility and the ability to develop processes together with the customer.

 

Collaboration with Ahola began in the early 1990s

 

Ahola Transport has been responsible for the transports from Ovako’s Imatra factory for several decades now.

 

– A collaboration of this length is a good indication that the partnership has worked well for both parties. The transport sector and industry have faced both highs and lows over the years, but collaboration has continued because both parties are committed to developing operations and staying competitive in changing circumstances, says Ovako’s Head of Global Logistics Ted Lundström.

 

A long-standing partnership does not mean always doing things the same way. On the contrary: the strength of our collaboration lies in our ability to assess our operations openly and find better solutions together. This has been particularly important in situations where customer requirements or the operating environment have changed rapidly. Thanks to continuous development, the supply chain has remained efficient and reliable even during periods of transformation.

 

Joint development work is visible in everyday life

 

The collaboration emphasises direct dialogue and a shared understanding of what is important to both parties. Over the years, operating models have been developed especially to strengthen service levels and delivery reliability.

 

One concrete step forward in recent years has been the introduction of HCT (High-Capacity Transport) combinations. The Ovako steel mill in Imatra has a 76-tonne and 34-metre combination vehicle in operation, and its performance has been closely monitored. Utilising greater capacity improves transport efficiency and significantly reduces relative emissions. The solution is a concrete example of logistics development, where cost-effectiveness and environmental responsibility go hand in hand.

 

Focus on the future: efficiency, responsibility and transformation

 

For the future, Ovako sees Ahola’s strength in the fact that they are not just a transport company, but a comprehensive provider that actively develops new solutions.

 

– Ahola’s investments in areas such as HCT development, electric vehicles and e-trailers indicate that the company is actively involved in the renewal of the industry. This provides a good foundation for developing our cooperation in the coming years, Lundström adds.

 

We continue to collaborate with Ovako to reduce environmental impacts

 

We will continue to work together with Ovako to reduce the environmental impacts of transports, increasingly utilising alternative energy sources as part of sustainable solutions.

 

The advancement of digitalization and the strategic use of data in planning are improving energy efficiency and optimization across the entire transport chain. This is how we are building a long-term, low-emission, and transparent partnership together with Ovako.