Outokumpu explores options to expand operations in US

Monday, 07 August 2023 12:12:35 (GMT+3)   |   Istanbul

Finland-based stainless steel producer Outokumpu has announced that it will focus on further strengthening its market position globally as part of the third phase of its strategy which will start in 2026.

Accordingly, the company has started doing a feasibility study with the aim of exploring options to expand operations in the US and meet the increasing demand for locally produced stainless steel. Outokumpu plans to increase its current cold rolling capacity and build its own hot rolling mill in Calvert, Alabama. Currently, the company is sourcing its hot rolling services from a third-party, which is part of a deal valid until 2036 unless terminated.

Under the third phase of its strategy, Outokumpu is also planning to increase competitiveness in the European market, integrate its value-chain, and to become a pioneer in sustainability along with a possible biocoke investment.

“We have successfully turned around our business in the US in recent years and our profitability has improved significantly. We are committed to the US and broader North American markets for the long term and are exploring options as we seek to increase the capacity in our Calvert mill in Alabama. As the US’s second largest stainless steel producer, our goal is to find the best possible solution to achieve our commercial ambitions in North America,” Heikki Malinen, CEO of Outokumpu, stated.

As SteelOrbis reported previously, the company’s stainless steel deliveries in the third quarter of this year are expected to drop by 5-15 percent quarter on quarter due to the seasonal slowdown.

ElifKefeli
Elif Kefeli
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I graduated from Yeditepe University’s Department of Translation and Interpreting Studies in 2017. I joined SteelOrbis in 2021, where I currently work as a content specialist. I am writing news reports and industry-related content with a special focus on decarbonization, green steel, sustainability, and recycling.

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