Outokumpu to Increase Capacity in Degerfors
06/10/2010 - Outokumpu invests €104 million to increase capability and capacity of stainless steel quarto plate production in Degerfors, Sweden. The investment will increase annual production capacity by 30% to 150,000 tonnes.
Outokumpu invests €104 million to increase capability and capacity of stainless steel quarto plate production in Degerfors, Sweden. The investment supports the company's strategy to increase the proportion of special grades and to offer a wider product range.
Outokumpu has a global market share of about 20% in quarto plate, individually rolled wide and thick plate, used in chemical tankers, the energy industry, and desalination plants, for example.
Capability is increased through new equipment such as heat treatment batch furnaces, including cooling, and a leveler. The entire production flow will be streamlined, according to Outokumpu, and a new walking hearth furnace and cooling bed will be installed.
The investment will increase annual production capacity in Degerfors by 30% to 150,000 tonnes. The majority of the new capacity is scheduled to be available in 2014.
The quarto plate investment project was originally announced in October 2007 but was postponed in December 2008 due to the financial crisis and unsecure market conditions.
Outokumpu says that its future product mix in quarto plate will include more tailor-made products, added value service offerings and special grades, in particular its proprietary low nickel duplex grades.
Outokumpu's network of plate service centers, which now includes the recently inaugurated facility in Kunshan, China, will play an important role in developing this business.
Outokumpu, a global leader in stainless steel, serves customers in a wide range of industries worldwide. The company employs about 7500 people in more than 30 countries. The Group's head office is located in Espoo, Finland.
