Outokumpu plans to temporarily restrict its ferrochrome production due to weak ferrochrome market conditions
Outokumpu Oyj
Press release
January 2, 2024 at 9:00 am EET
Outokumpu plans to temporarily restrict its ferrochrome production due to weak ferrochrome market conditions
Due to weak ferrochrome market conditions, stainless steel producer Outokumpu plans to temporarily close one of its three ferrochrome furnaces and one of the two sintering* plants in Tornio, Finland. The plan would be to keep the ferrochrome furnace and one sintering plant closed until autumn 2024. Ferrochrome production will continue at about 80% of its full capacity during the temporary closure. In the business area Ferrochrome, we will start change negotiations related to the restriction of the ferrochrome production. Negotiations concern all the employees working at the Ferrochrome Works in Tornio, and the planned measures would apply to a maximum of 20 people.
“Stainless steel market has slowed down significantly, which has had a negative impact on our ferrochrome deliveries, and our ferrochrome inventories have increased. The possible temporary closure of one ferrochrome furnace and one sintering plant would be a difficult but necessary measure in this market situation. In the change negotiations, we try to find a solution in which we would be able to employ our Ferrochrome Works personnel in the other operations of the Tornio site and Kemi mine. However, we cannot rule out the possibility of temporary layoffs," says Martti Sassi, President, Business Area Ferrochrome.
Ferrochrome is an alloy between chromium and iron and is an essential raw material in the production of stainless steel.
*Preprocessing of ore concentrate
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 40 071 9669
Media: Päivi Allenius, VP – Communications and Brand, tel. +358 40 753 7374 or Outokumpu media phone +358 40 351 9840, e-mail media(at)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 approximately 8,500 professionals in close to 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com
