Outokumpu’s Board of Directors has approved a major investment to start the production of high-quality ultra-clean ferritic stainless steel grades, as well as bright annealed austenitic and ferritic stainless steel products in Tornio, Finland, to increase the share of direct end-user and project sales and to expand the value-added special stainless steel products capacity. The total investment is some EUR 370 million, including a service center in Southern Germany. The investment project in Tornio also comprises some upgrades in the melt shop and finishing lines. The return on the investment is well above the Group target of 13%. VOD (Vacuum Oxygen Decarburization) equipment will be installed in the Tornio melt shop to enable the production of high-quality ultra-clean ferritic stainless steel with very low carbon, nitrogen and hydrogen content, for the most demanding end-use applications, within the current capacity frame. High purity ferritics are mainly used in automotive and chemical industries, as well as in building and construction. A new bright annealing and cold rolling line will be installed at Tornio Works. The new line will enable Tornio to start the production of both austenitic and ferritic bright-annealed products, with an annual capacity of some 100,000tns. The bright-annealed finish stands for a mirror-like shiny stainless steel surface, and the products are typically used in applications like domestic appliances and food processing. The investment, together with the on-going replacement of the no. 2 annealing and pickling line, will increase the total finished products installed capacity of Tornio Works from the current 1.2 million tons to some 1.3 million tons by the end of 2010. The production capacity of ferritic grades will be some 230,000tns annually. After these investment Outokumpu has the capability of producing all major stainless steel grades.
