Outokumpu has entered the next phase in its strategy development aiming at delivering a more stable and profitable business model whilst also addressing the most attractive growth opportunities. In this respect the following decisions have been made: to increase the share of value-added special grades sales, an EUR 550 million investment will be made in Avesta, Sweden; to increase the share of sales to end-use and project customers, the service center network will be strengthened in China and Italy; and the successful Operational Excellence programs will be further expanded, with new targets for 2009 and beyond. As announced in January 2005, Outokumpu’s vision is to be the undisputed number one in stainless, with success based on operational excellence. The path to reach the vision was divided into two main phases: firstly, ensuring the number one position in Europe with building and strengthening operational excellence, and secondly, achieving global leadership in stainless by multiplying operational excellence. The ultimate goal is to secure a significant and sustained increase in shareholder value. In accordance with this plan, the emphasis has been so far on internal improvements and strengthening of the financial performance, as well as on developing the quality of the current asset base. At the moment, both the Production Excellence and Commercial Excellence programs are proceeding at full speed delivering this year at least the planned EUR 40 million benefits, with the ultimate target of EUR 160 million to be delivered from 2009 onwards. In addition, the EUR 100 million group-wide fixed cost reduction program was completed in 2006 delivering full results this year.
