Published:
13:00 23.10.2007 GMT+3 /HUGIN /Source: Outokumpu Oyj /HEX: OUT1V /ISIN:
FI0009002422
Outokumpu to make further EUR 240 million
investment into stainless steel value-added special products and service
centers
Stock
Exchange Release
October 23, 2007 at 1.00 p.m.
In line with Outokumpu's new strategy phase, announced on September 2007, to
increase the share of direct end-user and project sales and to expand the
value-added special products capacity, new investments worth a total of some
EUR 240 million over the next five years have been decided. The investments
comprise the expansion of the hot rolled plate (quarto plate) capacity in
Sweden and the US, and expanding the service center offering in Germany.
Consolidating
leading market position in hot rolled stainless steel plate
Outokumpu is the market leader in stainless steel
quarto plate (individually rolled wide and thick plate) with a global market
share of some 20%. The
current production capacity of some 160 000 tons of mainly tailor made
plate in special grades has been fully loaded the past few years. The growth of
the overall quarto plate demand is estimated to be strong in the coming years
driven by high investments into e.g. the energy sector, desalination and
process industries in general. The share of the high-strength low-nickel duplex
grades is estimated to grow faster than the overall market. To meet our
customers future demand and the general growth in this highly attractive
product range Outokumpu has decided to expand its production capacity and
capability in Degerfors in Sweden and New Castle (IN) in the US by some 100 000
tons.
Current
equipment will be upgraded and new equipment installed to increase the
capacities in Degerfors by some 80 000 tons to 190 000 tons and in
New Castle by some 20 000 tons to 70 000 tons. The amount of
investments will be some EUR 180 million and EUR 40 million, respectively. The
investment will spread out to five years with the majority of cash out-flows in
2008 and 2009. The returns on the investments are well above the Group target
of 13%. The new installed capacity is for the most part scheduled to be
available in 2010.
Outokumpu's
quarto plate product mix will shift more and more to value-added tailor made
plates and special grades, especially Outokumpu's proprietary lean duplex and
other duplex grades. The corrosion resistant high strength duplex grades offer
considerable material weight savings to customers and attractive opportunities
to Outokumpu. Typical end-user and project customers are in segments like
desalination, chemical tankers, oil & gas, pulp & paper, as well as in
energy, chemical and petrochemical industry. Applications include e.g. pressure
vessels and open tanks, heavy-walled pipes, bridge sections and process
equipment.
Expanding
service center offering in Germany
To improve
and increase its service offering to end-user and project customers in Germany,
the largest European stainless steel market, Outokumpu will expand the stock
and processing capacity of its Willich service center in north-western Germany.
With an investment of some EUR 20 million the annual stock and processing
capacity in Willich will increase from the current 60 000 tons to some
110 000 tons by 2009. The investment comprises e.g. a new cut-to-length
line and a new slitting line.
For further
information, please contact:
P�ivi Lindqvist, SVP - IR and Communications, Outokumpu Oyj,
tel. +358 9
421 2432, mobile +358 40 708 5351
paivi.lindqvist@outokumpu.com
Eero
Mustala, Senior Vice President - Corporate Communications, Outokumpu Oyj,
tel. +358 9 421 2435, mobile: +358 40 504 5146
eero.mustala@outokumpu.com
Ingela
Ulfves
Vice President - Investor Relations
tel. + 358 9 421 2438, mobile +358 40 515 1531, fax +358 9 421 2125
e-mail: ingela.ulfves@outokumpu.com
www.outokumpu.com
Outokumpu_Investment_231007
This content was distributed through
- connecting communication professionals with their target audience. Visit us here.
|