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Outokumpu has limited exposure to Russia and Ukraine

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Outokumpu Oyj
Press release
February 25, 2022 at 3.15 pm EET

Outokumpu has limited exposure to Russia and Ukraine

Outokumpu has been closely following the developments in Ukraine, and the company regrets to see that the conflict has now been escalated into war after Russia’s military attack. Outokumpu does not have employees or subsidiaries in neither of the countries.

In the short term, Outokumpu does not expect any material impacts from the situation on its business and operations.

If the situation continues, it could impact Outokumpu’s procurement of raw materials and energy gases.

  • Outokumpu’s main raw material is recycled steel which accounts for more than 90% of production. There is no dependency on Russia or Ukraine in recycled steel and only a limited amount of total nickel requirements is currently sourced from Russia. Supplies of additional raw materials have only a limited exposure to Russian origin materials and mitigation actions are already in place to resource such materials.
  • Outokumpu acquires energy gases in the European market, Russia being one of the indirect supplier countries. Alternative sources are being tested.
  • Our ferrochrome sources are independent, as we have our own chrome mine and ferrochrome production in Finland.

Outokumpu has an indirect stake in the Fennovoima nuclear plant project in Finland driven by Russian-owned company Rosatom. Outokumpu stated in its financial statements release that the fair value of the Fennovoima project was decreased to zero due to increased project risk.

In case of any direct and material financial impact, Outokumpu will announce them without delay.

For more information: 

Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 40 071 9669 

Media: Päivi Allenius, VP – Communications, tel. +358 40 753 7374
 

Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs some 9,000 professionals in more than 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com

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