September 08, 2008

Outokumpu to make further EUR 240 million investment

Finnish steelmaker Outokumpu in line with its 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.

Outokumpu said that the investments comprise the expansion of the hot rolled plate capacity in Sweden and the US and expanding the service center offering in Germany.

Outokumpu has decided to expand its production capacity and capability in Degerfors in Sweden and New Castle in 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 new installed capacity is for the most part scheduled to be available in 2010.

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 of a new cut to length line and a new slitting line.