Outokumpu plans to continue to restrict its ferrochrome production and starts related change negotiations
Outokumpu Oyj
Press release
October 7, 2022 at 9.00 am EEST
Outokumpu plans to continue to restrict its ferrochrome production and starts related change negotiations
The price of electricity remains exceptionally high and the situation on the energy market has not eased since Outokumpu announced on September 6 its decision to delay the restart of one of its three ferrochrome furnaces after a maintenance break. In this exceptional situation, the company plans therefore to further delay the restart of this furnace at least until the end of the first quarter of 2023 and will start change negotiations related to the restriction of the ferrochrome production. These negotiations concern all of the employees working in the ferrochrome operations, and the planned measures would concern at most 70 people.
“Unfortunately, the situation in the energy market has not eased, but the high price of electricity continues to have a negative impact on our cost competitiveness compared to our competitors, mainly from outside Europe. The possible further delay of the restarting of the furnace is a difficult but potentially necessary measure in an utterly exceptional situation. In the change negotiations, we will try to find a solution for us to be able to employ our ferrochrome personnel in the other Tornio operations,” says Martti Sassi, President, business area Ferrochrome.
Outokumpu started to optimize its ferrochrome production in August 2022 by not producing ferrochrome at the highest electricity prices. The capacity of the furnace that has been shut down is approximately 30% of the entire ferrochrome capacity. Continuing to restrict the ferrochrome production will not impact Outokumpu’s stainless-steel deliveries.
“Outokumpu’s ferrochrome has the smallest carbon footprint in the world. We hope that politicians will take an active role in stabilizing the energy market environment, so that we can continue to profitably produce ferrochrome,” continues Sassi.
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669
Media: Päivi Allenius, VP – Communications and Brand, tel. +358 40 753 7374
Media desk, tel. +358 40 351 9840, e-mail media@outokumpu.com
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