An international
stainless steel company with
production facilities in 30 countries, Outokumpu has decided to reorganize its Outokumpu
Stainless Tubular Products (OSTP) unit in
Sweden by transferring the manufacture of similar types of products to a single location.
The purpose of the transfer and the investment is to concentrate the
production of similar types of tubes at one location and thereby to improve efficiency.
OSTP's Nyby unit will install a second integrated
production line for welded
stainless process tubes. The cost will be Euro 8 million while operations will commence in the third quarter of 2008.
The two heat exchange tube
production lines in the Fagersta unit will be transferred to Nyby during 2007, while the large diameter tube
production line will be transferred from Nyby to Storfors during 2008.
The Fagersta unit, on the other hand, is scheduled to be closed in the middle of 2007.
The reorganization of the OSTP unit is expected to increase the annual
production capacity at the Nyby unit by 50 percent to 30,000 metric tons, and by improving logistics and efficiency in OSTP
Sweden, to make the business more competitive.