On April 14, Mika Seitovirta, CEO of
Finland-based
stainless steel producer
Outokumpu, stated at the company's annual general meeting that in 2013 the weaker-than-expected market and the remedy requirement set by the European Commission caused headwinds that offset the good progress made in synergy and cost savings. He said that
Outokumpu can now focus all its efforts and energy on profitability improvements, especially on the ramp-up of its Calvert site in the US and on restructuring in Europe, to ensure that the company will return to profitability and create value for its shareholders.
The
Outokumpu CEO remarked that, as the reduction of excess capacity continues to increase the company's utilization rates, the investments in Calvert and in the ferrochrome works in Torino,
Finland are starting to pay off, and savings from cost-saving programs are accumulating, adding that he expects the turnaround plan to start showing in the results as well.
"In line with our expectations, there has been modest improvement in the underlying market demand, sequentially higher delivery volumes and some improvement in prices. While there are clouds that cause continued uncertainty especially in the European economy, we remain cautiously optimistic about the market sentiment," commented Seitovirta regarding the market developments during the first quarter of 2014.