Heat Treat Industry News
June 16, 2010
Outokumpu to increase quarto plate production in Degerfors, Sweden with euro 104 mln investment
The Finland-based stainless steel maker Outokumpu Oyj said it would increase capability and capacity of stainless steel quarto plate production in Degerfors, Sweden with investment of euro 104 million.
Outokumpu said the investment is in line with its strategy to increase the proportion of special grades, and also strengthens the Group's position as a world-leading quarto plate producer.
Outokumpu has a global market share of some 20% in quarto plate, individually rolled wide and thick plate, used for example in chemical tankers, energy industry and desalination plants. Outokumpu, with this investment, can grow further and offer a wider product range with various dimensions and grades.
“We are very positive about the future market for special grade quarto plate, tailored to customer demands. This investment enables us to produce even higher quality stainless steel. Additionally, the work environment will be improved and the environmental impact further reduced,” said Bo Annvik, Executive Vice President - Specialty Stainless.
The capability is increased through new equipment like heat treatment batch furnaces, including cooling, and a leveler. The investment will increase annual production capacity in Degerfors by 30% to 150 thousand tons. The entire production flow will be streamlined and a new walking hearth furnace and cooling bed will be installed.
The majority of the new capacity is scheduled to be available in 2014. The investment will be spread out over five years with the majority of cash out-flows in 2012 and 2013. The return on the investment is well above the Group target of 13%.
In the future, Outokumpu's product mix in quarto plate will include more tailor-made products, added value service offerings and special grades, in particular Outokumpu's proprietary low nickel duplex grades. The corrosion resistant high strength duplex grades offer considerable material weight savings to customers.
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