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Outokumpu Restructures Tube Business
09/04/2009 - Outokumpu is selling parts of the production in Jakobstad, Finland, and optimizing the utilization of the production lines within its Stainless Tubular Business Unit.
Outokumpu is restructuring its Stainless Tubular Business Unit (OSTP) to improve efficiency and cut costs. As a result, the company is selling parts of the production in Jakobstad, Finland, and optimizing the utilization of the production lines within the unit.
Outokumpu intends to sell its non-core square and rectangular tube business in Jakobstad to the Finnish company Stalatube Oy, a square and rectangular tube specialist. Eight workers will transfer to Stalatube as a result.
The company also intends to move production from Jakobstad's old lines, where small welded pipes are produced, to the fully integrated laser annealing and pickling lines (the LAP lines) in Nyby, Sweden. The production of large tubes will be moved from Jakobstad Plate Production to the laser pickling packaging line (the LPP line) in Jakobstad.
These changes, which will affect about 50 employees, are planned to take place from January 1, 2010.
"Stalatube taking over the square and rectangular tube business is an example of market consolidation where OSTP now focuses on round tubes. We have the world's most integrated pipe production lines in Jakobstad and Nyby. The objective is to utilize these lines and close less efficient operations, resulting in a lower cost structure for OSTP," said Lasse Johansson, head of the OSTP business unit.
Outokumpu will start negotiations with personnel representatives to find solutions for the affected employees.
