Outokumpu's Ferrochrome Restriction Move

Kemi
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Synopsis

Outokumpu, facing a sluggish ferrochrome market, plans to temporarily close furnaces and sintering plants in Tornio, Finland, reducing production by 20% till autumn 2024. Change negotiations involving Ferrochrome Works employees aim to mitigate the impact, exploring redeployment within the Tornio site and Kemi mine.

Article:

Outokumpu, a stainless steel producer, grapples with challenging market conditions in the ferrochrome sector, prompting plans to temporarily shutter one ferrochrome furnace and one sintering plant at its Tornio, Finland facility. This measure, expected to last until autumn 2024, will curtail ferrochrome production to around 80% of its full capacity.

Martti Sassi, President of Business Area Ferrochrome, highlighted the slowdown in the stainless steel market, adversely affecting ferrochrome deliveries and causing a surge in ferrochrome inventories. The proposed closure of these facilities, while a difficult decision, is deemed necessary given the prevailing market dynamics. Change negotiations, encompassing all Ferrochrome Works employees in Tornio, aim to address this challenge, potentially impacting a maximum of 20 individuals.

During the change negotiations, efforts are underway to explore alternative roles for the affected personnel within the Tornio site and Kemi mine. The aim is to mitigate job losses by redeploying workers to other operational areas. However, the possibility of temporary layoffs cannot be ruled out.

Ferrochrome, an alloy crucial in stainless steel production, plays a pivotal role in ensuring the quality and characteristics of stainless steel products.

Conclusion:

Outokumpu's decision to temporarily curtail ferrochrome production reflects the challenging landscape in the ferrochrome market, driven by the slowdown in stainless steel demand. The company's attempt to navigate this situation by exploring redeployment options for affected employees underscores a commitment to mitigate the impact while adapting to market fluctuations.

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