Finland-based stainless steel producer Outokumpu has announced its intention to close its thin strip business at Meadowhall in Sheffield, UK. The closure of the Sheffield Thin Strip business, which has been incurring losses for several years due to an over-supplied market for stainless precision strip, is expected to take place in the first quarter of 2009.
Most of the business will be transferred to Outokumpu's Sweden-based Kloster unit in Långshyttan, which is specialized in stainless steel strip production. Thus, Outokumpu will be able to utilize synergies and to deliver the full benefits of Kloster's production capacity.
The closure of operations will result in about 230 job losses at the Meadowhall site. Outokumpu will immediately start local consultations with the workforce and the relevant trade unions to consider different alternatives to find a suitable solution for all parties.
Outokumpu will also commence discussions with customers to put in place possible alternative supply routes in order to maintain the best possible customer service.