Finland-based stainless steelmaker Outokumpu has announced an update on its strategy, and also announced the expansion of its efficiency programs as well as the expected achievement of its €200 million synergy targets in 2015, two years ahead of the original plan.
The program that originally targeted €150 million savings by the end of 2014 has been expanded, aiming for savings of €250 million by the end of 2015. New measures relate mainly to efficiencies in production and general procurement. The EMEA (Europe, Middle East and Africa) restructuring plan remains intact, with at its center the closure of Bochum melt shop in 2015. All in all, Outokumpu's total targeted savings are now expected to reach €550 million by the end of 2017.
Outokumpu said that raw materials remain a key focus area, representing 60 percent of costs, and thereby are a significant area for efficiency improvements. Outokumpu will maximize the potential of its own chrome mine and expanded ferrochrome operations.