Outokumpu to re-evaluate ferrochrome production expansion
(Thomson Reuters ONE) -
STOCK EXCHANGE RELEASE
March 29, 2010 at 9.30 am EET
Outokumpu has decided to update the feasibility study on the investment to
double the ferrochrome production capacity in Tornio, Finland to 530 000 tons.
The study will include an updated financial evaluation and technical
specifications with detailed budgets and timetables. The decision based on the
study will be made by the end of June 2010. If realised the investment would add
about 100 permanent jobs in Ferrochrome Works in Tornio and in Kemi mine.
In June, 2008 Outokumpu announced the EUR 420 million investment project related
to ferrochrome production expansion. Due to the financial crisis and the
insecure market situation the investment project was postponed in December 2008.
The market price of ferrochrome has started to recover since the autumn 2009 and
is generally expected to continue increasing mainly due to production
constraints of electricity in the main ferrochrome producing country, South
Africa. The production of ferrochrome is a very energy intensive process.
Despite the fact that Outokumpu's production process is the most
energy-efficient globally, an expansion would mean a significant increase in the
Group's electricity consumption and costs.
CEO Juha Rantanen:"The original ferrochrome project was very attractive. We
continue to believe that there is a lot of potential for this project still
today but it is greatly dependent on the future electricity price and supply in
Finland. To secure our long-term cost-competitiveness, Outokumpu has a
significant stake in the Fennovoima nuclear power plant initiative. The Finnish
government is expected to make a decision on nuclear power projects this spring,
and the decision will be taken into account as one of the factors having an
impact on the ferrochrome investment."
Background information is available in the Internet at
www.outokumpu.com/investors
For more information please contact:
Päivi Lindqvist, SVP - Communications and Investor Relations, tel +358
40 708 5351
OUTOKUMPU OYJ
Outokumpu is a global leader in stainless steel with the vision to be the
undisputed number one. Customers in a wide range of industries use our stainless
steel and services worldwide. Being fully recyclable, maintenance-free, as well
as very strong and durable material, stainless steel is one of the key building
blocks for sustainable future. Outokumpu employs some 7 500 people in more than
30 countries. The Group's head office is located in Espoo, Finland. Outokumpu is
listed on the NASDAQ OMX Helsinki.
www.outokumpu.com
[HUG#1398502]
ENG Ferrochrome expansion 29.3.2010: http://hugin.info/3010/R/1398502/354285.pdf
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Datum: 29.03.2010 - 02:31 Uhr
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