Outokumpu to close Veteli Works in Finland

Tuesday, 17 November 2009 09:48:27 (GMT+2)

Finnish steelmaker Outokumpu has announced that it is taking new actions to restructure its Stainless Tubular Business Unit (OSTP).

As per a statement released by the company, in order to optimize production and cut costs, the company intends to close its production site in Veteli in Finland, where a wide range of fittings to tubular products are produced.

Accordingly, two of the production lines in Veteli will be moved to Outokumpu's site in Jakobstad, Finland, while the third line will be closed. Additionally, part of the production volumes will be moved to the site in Svedjeholmen in Örnsköldsvik, Sweden.

The restructuring does not affect Outokumpu's product range or offering, the company stated.

The closure of the Veteli works is planned to take place at the end of March 2010. The site employs about 50 people who will be affected by these changes. Part of the employees will be offered a transfer to Jakobstad. Outokumpu said it will start negotiations with personnel representatives to find solutions for employees in the change process.

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