Finland-based stainless steel producer Outokumpu has announced its intention to reduce the capacity at its melt-shop in Sheffield, UK, due to the very weak demand for stainless steel.
The proposal would result in the reduction of production capacity to some 200,000 mt per year and in some 110 job losses. This is in addition to the approximately 50 job losses at the melt-shop that were announced earlier in February. As a result of the proposed job reductions, the number of the company's employees in the UK will decrease to approximately 450. Currently, the melt-shop has an annual operational production capacity of about 350,000 mt.
Outokumpu's Sheffield melt-shop manufactures stainless steel slabs, billets and blooms for the production of flat and long products within the Outokumpu Group and also for direct sale to customers.
According to the company's press release, the operational capacity adjustment will not detract from Outokumpu's ongoing commitment to delivering excellent customer service throughout these extremely difficult times.
Outokumpu's other operations in the UK are unaffected by this announcement.