Stainless steel giant Outokumpu has reined back on plans announced in 2023 to expand its existing cold rolling capacity in the US. The company now says that, based on an extensive feasibility study, it will not invest ‘at this point of time’.
According to a news release, ‘Outokumpu remains committed to the US market and will follow closely the impact of the expanded tariff action, and in the meanwhile focus on improving efficiency.’
Instead, Outokumpu has set a target of boosting its capacity in the region by 80 000 tonnes by the end of the year through investments in ‘de-bottlenecking’ and productivity improvements. It says it is well on track to reach this target, having achieved a 65 000-tonne increase by the end of 2024.
US commitment
Kati ter Horst, president and ceo, says it has a strong position in the US and consider it to be an attractive and robust market for Outokumpu in the long-term.
‘Given the current unpredictable market environment with significantly increased imports in the recent years, the result of our feasibility study did not support making a capital-intensive investment in additional cold rolling capacity for the time being.
‘This allows us to direct our capital into other areas as we are currently evaluating the long-term strategic options to grow and develop our business further, including in the US.’
Outokumpu Oyj is headquartered in Helsinki, Finland with 10 600 employees in more than 30 countries. It is the largest producer of stainless steel in Europe and the second largest producer in the Americas.
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