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Outokumpu to Close Production Site in Veteli, Finland

11/16/2009 - Outokumpu announces plans to close its production site in Veteli, Finland, as part of the ongoing restructuring of its Stainless Tubular Business Unit, OSTP.

Outokumpu has announced plans to close its production site in Veteli, Finland, in support of its continued restructuring of its Stainless Tubular Business Unit (OSTP). The company said the closure will help it to optimize production and cut costs.
 
Outokumpu’s Veteli facility operates three production lines to produce a wide range of fittings to tubular products. Two of the facility’s production lines will be moved to Outokumpu's site in Jakobstad, Finland, while the third line will be closed. Part of the Veteli facility’s production volumes will be moved to the site in Svedjeholmen in Örnsköldsvik, Sweden.
 
The company noted that the restructuring will not affect its product range or offering.
 
“This move enables us to integrate the fittings production into the process pipe plant of Jakobstad and to use our different production methods in an optimal way,” noted Lasse Johansson, head of OSTP business unit. “By decreasing the number of sites, we make cost savings which is necessary to us in this difficult market climate.”
Outokumpu plans to close the Veteli site, which employs about 50 people that will be affected by affected by the changes, at the end of March 2010.
Part of the employees will be offered the opportunity to transfer to Jakobstad. Outokumpu will start negotiations with personnel representatives to find solutions for employees in the change process.
 
Outokumpu is a global leader in stainless steel with a vision to be the undisputed number one in stainless, with success based on operational excellence. With head offices in Espoo, Finland, Outokumpu employs some 8000 people with operations in some 30 countries.