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Outokumpu to Double Ferrochrome Production

06/11/2010 - Outokumpu has decided to restart the project to double the Group's ferrochrome production capacity in Finland. This investment will raise ferrochrome production in Tornio to 530,000 tonnes annually. Project implementation starts immediately.

Outokumpu has decided to restart the project to double the Group's ferrochrome production capacity in Finland. The investment totals EUR 440 million including interest and is based on an updated feasibility study conducted during the spring.
 
This investment will raise ferrochrome production in Tornio to 530,000 tonnes annually. Outokumpu says that amount will cover the Group’s internal needs and supply the global market with more than 200,000 tonnes of ferrochrome annually.
 
Project implementation starts immediately; when finalized, it will add about 120 permanent jobs in the Ferrochrome Works in Tornio and in the Kemi mine, according to Outokumpu.
 
The company says that the ferrochrome market is “very attractive” because of its high growth expectations and the rising demand especially in China. It also notes that ferrochrome production is an energy-intensive process and long-term pricing of ferrochrome is driven by difficulties in electricity availability in South Africa, the main producing country with 40% of the global market.
 
"We regard our own ferrochrome as a unique competitive advantage,” said CEO Juha Rantanen. “This expansion of our production capacity will make the Group self-sufficient. Additionally, it will provide us with new growth opportunities. We are confident that customers will be very interested in high-quality ferrochrome that is produced energy-efficiently and with lowest emissions. We can now establish a permanent position on the ferrochrome market and build long-term customer contracts."
 
The original investment was decided in June 2008 but was put on hold in December 2008 due to the financial crisis and unsecure market conditions.
 
The expanded capacity is estimated to be operational during the first half of 2013 with capacity ramped up in 2015. With current prices and exchange rates, the expansion should bring additional annual operating profits of about EUR 150 million at full capacity.
 
Outokumpu, a global leader in stainless steel, serves customers in a wide range of industries worldwide. The company employs about 7500 people in more than 30 countries. The Group's head office is located in Espoo, Finland.