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Outokumpu to Invest in Advanced Stainless Capability at Tornio
02/01/2008 - Outokumpu announces a major investment at Tornio Works that would enable the production of high-quality ultra-clean ferritic stainless steel grades, as well as bright annealed austenitic and ferritic stainless steel products.
Outokumpu's Board of Directors has approved a major investment at Tornio Works that would enable the production of high-quality ultra-clean ferritic stainless steel grades, as well as bright annealed austenitic and ferritic stainless steel products.
The company is making the investment—which will total some EUR 370 million—in support of the company’s new strategy (announced in September 2007) to increase the share of direct end-user and project sales, and to expand value-added special stainless steel products capacity.
The total investment package will also include a service center in Southern Germany, as well as some upgrades in the Tornio meltshop and finishing lines. The company said the return on the investment is well above the Group target of 13%.
As part of the Tornio meltshop upgrade, Outokumpu will install VOD (Vacuum Oxygen Decarburization) equipment to enable the production of high-quality ultra-clean ferritic stainless steel with very low carbon, nitrogen and hydrogen content. VOD-processed steels will be suitable for the most demanding end-use applications, within the current capacity frame. The main applications for high-purity ferritics include the automotive and chemical industries, as well as in building and construction.
Outokumpu will also install a new bright annealing and cold rolling line at Tornio Works that will enable the facility to start the production of both austenitic and ferritic bright annealed products, with an annual capacity of some 100,000 tonnes. Bright annealed finish products, which feature a mirror-like shiny stainless steel surface, are typically used in such applications as domestic appliances and food processing.
The investment, together with the facility’s ongoing replacement of the No. 2 Annealing and Pickling Line, will increase the Tornio Works’ total finished products installed capacity from the current 1.2 million tonnes to some 1.3 million tonnes by the end of 2010. The facility’s production capacity for ferritic grades will be some 230,000 tonnes annually. After these investments Outokumpu will be capable of producing all major stainless steel grades.
To serve stainless steel customers in Southern Germany and especially the bright annealed austenitic and ferritic stainless steel customers around Stuttgart, Outokumpu has decided to set up a new service center near Stuttgart. The service center will provide just-on-time deliveries with standard grades and bright annealed stainless steel that is processed to the needs required by the customer. The service center, which will have an annual processing capacity of some 60,000 tonnes, will be in place by the end of 2010.
