Abstract
LKAB was severely hit by the emergence of an extraordinary oversupply of iron ore, following the two oil crises in the 1970s. LKAB's products became uncompetitive, both on cost and on quality grounds, and the volume of deliveries was sharply curtailed. A forceful product development programme helped the company to regain lost markets. This was particularly true for pellet products, whose share in total deliveries has risen from one-third to two- thirds in the past 20 years. The product development efforts, along with strong measures to reduce unit costs, have turned the former losses into stable profits. Planned investment in a new mine level and in additional pellet capacity, along with continued product development efforts, assure the company's long-run viability.
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