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SSAB to Increase Production at Oxelösund
02/20/2012 - SSAB has announced plans to increase hot metal production in Oxelösund in response to improved demand for quenched steels, first and foremost within SSAB Americas.
SSAB has announced plans to increase hot metal production in Oxelösund in response to improved demand for quenched steels, primarily within SSAB Americas.
As a part of those plans, the Oxelösund facility will resume production at its larger blast furnace (M4), which has been out of operation since July 2011. The facility’s smaller blast furnace is to be temporarily closed.
“We are witnessing stronger demand for our quenched steels in Latin America, and thus we are increasing our production in Oxelösund,” said Melker Jernberg, Head of Business Area SSAB EMEA. “This also means increased production in the rolling mill and in other operations in subsequent parts of the production process.
“The new cooling line in Borlänge, which is being brought into commercial operation during the first quarter, is another reason why we are increasing the production of slabs in Oxelösund,” added Jernberg. “Slabs are mainly supplied from Luleå, but Oxelösund also supplies steel slabs to Borlänge.
By shifting production to the larger blast furnace, Oxelösund will increase its capacity by approximately 25%, or 4,000 tonnes per week. Thanks to a relining the larger blast furnace underwent during the third quarter of 2011, switching to the larger furnace also means that hot metal production will be more cost-efficient with a lesser impact on the environment.
Market demand will determine when the smaller blast furnace (M2) can be brought into operation again.
The company noted that operation of the blast furnace in Luleå will not be affected by the change in Oxelösund. Production of hot metal in Luleå is taking place at normal capacity utilization. In addition, the market prospects stated in connection with the report for the fourth quarter still apply, and prospects for the European market still remain uncertain.
SSAB is a global leader in value-added, high strength steel, offering products developed in close cooperation with its customers. SSAB has employees in over 45 countries and operates production facilities in Sweden and the US.
