Outokumpu has decided to carry out a number of production line transfers and an investment in its stainless steel tubular business unit OSTP in Sweden. OSTP has several production units in Sweden, representing some 40% of OSTP’s total tube production capacity. The purpose of the transfers and the investment is to concentrate the production of similar types of tubes into one location and thereby improve efficiency. OSTP’s Nyby unit will invest in a second LAP line (Laser-Annealing-Pickling), which is an integrated production line for welded stainless process tubes. The total investment is some EUR 8 million, and production is scheduled to start in the third quarter of 2008. The two heat exchange tube production lines in the Fagersta unit will be transferred to Nyby during 2007. Furthermore, the large diameter tube production line will be transferred from Nyby to Storfors during 2008. The Fagersta unit is scheduled to be closed in mid-2007. As to the remaining hygienic tube production line in Fagersta, options are still being considered. These actions will increase the annual production capacity of the Nyby unit by some 50% to 30 000 tonnes, and improve logistics and efficiency in OSTP Sweden. OSTP’s total production capacity will slightly increase as a result of these actions.
