Good News from Mon, 14 June, 2010:

Outokumpu invests over half a billion on ferrochrome and quarto plate production

Outokumpu Outokumpu’s decision to double its ferrochrome production was sped up by the government’s nuclear energy decision and South Africa’s focus on the World Cup instead of energy production.
Outokumpu will double its ferrochrome production capacity, and increase its production readiness for stainless steel quarto plates. The combined value of the investments made in the Ferrochrome Work in Tornio in Finland and in Degerfors in Sweden is nearly 550 million euro.  

According to Outokumpu’s latest press release the 440 million euro investment in Tornio secures the group’s internal ferrochrome sourcing and makes Outokumpu a significant seller of ferrochrome. The implementation of the project will start immediately and when finalised, adds about 120 permanent jobs in the Ferrochrome Works in Tornio and Kemi mine.

Ferrochrome is on rising demand especially in China. Ferrochrome production is a very energy-intensive process and the long-term price of ferrochrome is driven by difficulties in electricity availability in South Africa, the main producing country with 40 per cent share of the global market.

This investment doubles the ferrochrome production in Tornio to 530 000 tonnes per annum. The expansion enables the Group to cover its internal needs and supply the global market with over 200 000 tonnes of ferrochrome annually.

In Degerfors Outokumpu will invest 104 million euro to increase the capability and capacity of stainless steel quarto plate production. Quarto plates are individually rolled wide and thick plates, which are used for example in chemical tankers, energy industry and desalination plants.

The investment strengthens Outokumpu’s position as one of the world’s leading quarto plate producers. Outokumpu’s global market share is some 20 per cent of the global quarto plate market.

Decisions about both projects was originally announced in 2007 and 2008, but their implementation was postponed due to the financial crisis and uncertain market conditions

In addition to strengthening the company’s market position, the management of Outokumpu emphasizes the significance of the Finnish Government’s renewed nuclear energy policy especially to the Ferrochrome Works in Tornio.
 
www.outokumpu.com

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