Outokumpu to Raise Ferrite Stainless Sales Rate to 15% in 3 Years

World major stainless steel maker, Outokumpu increases ferrite stainless products rate to around 15% at the major plant of Tornio in Finland in 3 years, which is almost double of current level, to follow growing demand for automobile and appliances. The firm doubles the ferrochrome production to annual 520,000 tonnes at Tornio. The firm also expands the sales of duplex plate internationally to cover higher demand in atomic power plant and chemical plant by expanding the plate making capacity at Indiana, USA and launching service center in Kunshan, China.

The CEO Juha Rantanen said to a reporter of Japan Metal Bulletin at site of World Steel Association’s annual meeting in Tokyo the firm tries to expand the ferrite stainless with stable price when austenite grade with unstable price under volatile nickel ingot price represents majority of production at Tornio plant now. The firm tries to focus on commodity grade products including SUS430 grade.

Mr. Rantanen said the firm doubles the ferrochrome output capacity by restarting the expansion program while the firm froze the project after financial crisis. Ferrochrome price, which started to recover since late 2009, is expected to keep increasing due to power supply neck of major production country of South Africa. The firm tries to expand the energy efficient ferrochrome process to improve productivity of ferrite stainless products.

The firm announced the ferrochrome doubling project for 440 million euro in June 2008. The firm planned to cover the requirement at Tornio plant along with securing reserve capacity for outer sales. However, the firm announced postpone of the project in December 2008 due to financial crisis.

The firm plans to increase the sales rate of high valued products including duplex plate by 15-20% from current level with no time frame due to uncertain demand condition depending on world economy.