Outokumpu in 2023 announced that it was looking at ways to increase cold rolling capacity in the U.S. But based on the results of a feasibility study, the company is setting aside an expansion. Instead, it said, it is working to lift output by 80,000 metric tons through a variety of debottlenecking investments and productivity enhancements. 

The company said it is well on its way to reaching that target, too, having boosted output by 65,000 metric tons as of the end of 2024.  

“We have a strong position in the U.S., and we continue to see it as an attractive and robust market for Outokumpu in the long term and aim to further strengthen our position there,” said Kati ter Horst, Outokumpu president and chief executive officer. 

“Given the current unpredictable market environment with significantly increased imports in the recent years, the result of our feasibility study did not support making a capital-intensive investment in additional cold rolling capacity for the time being. This allows us to direct our capital into other areas as we are currently evaluating the long-term strategic options to grow and develop our business further, including in the U.S.”

However, Outokumpu said the feasibility study did not take into account President Donald Trump’s 25% tariffs on imported steel and aluminum, which were announced after the fact. The tariffs might materially impact the analysis, Outokumpu said, and it “will follow closely the impact of the expanded tariff action.” 

“Import penetration, mainly from Asia, into the North American market has nearly doubled during the past five years, and this has clearly impacted our decision not to increase our production capacity at this point,” ter Horst said. “Now, as the newly introduced tariffs may decrease import pressure, we will follow the situation closely. We support free trade, but it is crucial to ensure a level playing field both in the U.S. and Europe.”