Outokumpu to improve the efficiency of its tubular product business
PRESS RELEASE
September 3, 2009 at 14.10 pm EET
Outokumpu is restructuring its Stainless Tubular Business Unit (OSTP) to improve efficiency and cut costs. As a result of the strategy process the company is selling parts of the production in Jakobstad in Finland and optimizing the utilization of the production lines within the unit.
Outokumpu intends to sell its square and rectangular tube business in Jakobstad to the Finnish company Stalatube Oy, a square and rectangular tube specialist. The tubes produced are not OSTP's core business and increasing the market share and product range would have required large investments. The business in question employs eight people who will transfer to Stalatube.
Outokumpu also intends to move production from Jakobstad's old lines, where small welded pipes are produced, to the fully integrated laser annealing and pickling lines (the LAP lines) in Nyby in Sweden. In addition, the production of large tubes will be moved from Jakobstad Plate Production to the laser pickling packaging line (the LPP line) in Jakobstad. These changes are planned to take place from January 1, 2010.
In total, about 50 employees will be affected by these changes.
"Stalatube taking over the square and rectangular tube business is an example of market consolidation where OSTP now focuses on round tubes. We have the world's most integrated pipe production lines in Jakobstad and Nyby. The objective is to utilize these lines and close less efficient operations, resulting in a lower cost structure for OSTP", says Lasse Johansson, the head of OSTP business unit.
Outokumpu will start negotiations with personnel representatives to find solutions for employees in the change process.
For more information, please contact:
Lasse Johansson, head of Business Unit Outokumpu Stainless Tubular Products, tel +46 226 826 02, mobile +46 70 618 26 02
Päivi Lindqvist, SVP Communications & Investor Relations, tel. +358 9 421 2432,
mobile +358 40 708 5351