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Outokumpu to Reevaluate Ferrochrome Production Expansion
03/30/2010 - Outokumpu has decided to update the feasibility study on the investment to double the ferrochrome production capacity in Tornio, Finland, to 530,000 tonnes. A decision based on the study is expected to be made by the end of June 2010.
Outokumpu has decided to update the feasibility study on the investment to double the ferrochrome production capacity in Tornio, Finland, to 530,000 tonnes. The company says the study will include an updated financial evaluation and technical specifications with detailed budgets and timetables.
A decision based on the study is expected to be made by the end of June 2010. If realized, the investment would add about 100 permanent jobs in Ferrochrome Works in Tornio and in Kemi mine, according to Outokumpu.
The company originally announced the EUR 420 million investment project related to ferrochrome production expansion in June 2008. Due to the financial crisis and the insecure market situation, the investment project was postponed in December 2008.
The market price of ferrochrome has started to recover since fall 2009, according to Outokumpu, and is expected to continue increasing mainly due to production constraints of electricity in South Africa, the main ferrochrome-producing country. The company notes that ferrochrome production is a very energy-intensive process.
“The original ferrochrome project was very attractive,” said CEO Juha Rantanen. “We continue to believe that there is a lot of potential for this project still today, but it is greatly dependent on the future electricity price and supply in Finland. To secure our long-term cost-competitiveness, Outokumpu has a significant stake in the Fennovoima nuclear power plant initiative. The Finnish government is expected to make a decision on nuclear power projects this spring, and the decision will be taken into account as one of the factors having an impact on the ferrochrome investment.”
Outokumpu is a global leader in stainless steel, with customers in a wide range of industries. The company is the market leader in duplex grades with a global market share of close to 50%. It employs some 7500 people in more than 30 countries. The Group’s head office is located in Espoo, Finland.
