On July 29, Finnish mining and metal manufacturing equipment provider Outotec issued its financial results for the first half of 2011, stating that production capacity utilization rates continued to be at good levels increasing the demand for spare parts and services.
According to the financial results, the operating profit of Outotec was €32.3 million in the first half of 2011, up by 117 percent compared to the same period of 2010, while its sales revenues in the period in question rose 30 percent year on year to €536 million. The company's order intake was €875.7 million in the given period, increasing by 14 percent compared to the first half of 2010.
Regarding the market outlook, Outotec said that the strong market activity is expected to continue based on the long-term metals demand estimations, high metals prices, declining ore grades and tightening environmental regulations. As several mining and metals companies are reactivating projects that were suspended due to the economic downturn, orders are strong.
According to Outotec's statement, there are several iron ore processing plant expansions and new investments under development particularly in Brazil and India, catering mainly to the Chinese market where concentrates and pellets are in constant demand.