Outokumpu

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This article is about a company; for the Finnish city, see Outokumpu, Finland.
Outokumpu Oyj
Type Listed company
Traded as OMXOUT1V
Industry Stainless steel
Founded 1932
Headquarters Espoo, Finland
Key people Jorma Ollila (Chairman), Mika Seitovirta (President and CEO)
Products Stainless steel
Revenue €6.745 billion (2013)[1]
Operating income Decrease (€377 million) (2013)[1]
Profit Decrease (€1003 million) (2013)[1]
Total assets €8.823 billion (end 2013)[1]
Total equity €1.891 billion (end 2013)[1]
Employees 12,561 (end 2013)[1]
Website www.outokumpu.com

Outokumpu is a group of companies headquartered in Espoo, Finland, producing stainless steel. The company claims to be the "global leader in stainless steel and high performance alloys", and employes more than 12,000 employees in more than 30 countries.[2] Outokumpu has a long history as a mining and metallurgical company, which has then focused in stainless steel. The company still has one operational mine is in Keminmaa to exploit chromium ore, used as ferrochrome in stainless steel.

Company history[edit]

In 1908, a large deposit of copper ore was discovered in Outokumpu, in Northern Karelia. The company was established to develop the now-exhausted mine. In the 1940s the Outokumpu (OTK) developed the flash smelting process for smelting copper.

In 1992, British Steel Stainless merged with the Swedish firm Avesta (as in Avesta Municipality) to form Avesta Sheffield. In 2001 it merged with Outokumpu, forming the third-largest stainless steel producing company in the world at the time. The new company was owned by Corus Group, institutional Swedish investors and the Finnish company Outokumpu. The new company was named AvestaPolarit, with headquarters in Stockholm. In 2004 Outokumpu bought the shares owned by Corus, so AvestaPolarit became a wholly owned subsidiary of the Outokumpu Group. AvestaPolarit was also removed from the stock exchanges in Helsinki and in Stockholm, since only one company remained, named Outokumpu, headquartered in Espoo.

Until around 2000 the turnover of copper products was bigger than that of stainless steel products. Outokumpu Copper, the copper branch, excluding the Copper Tube and Brass division, was sold in 2005. Currently, this company is known as Luvata International.[3] The zinc branch merged with the Swedish company Boliden and in 2005, Outokumpu sold all Boliden shares. The cold rolling mill in Sheffield was closed on 31 March 2008, as one of the consequences of the company-wide fixed cost reduction plan (by 10%). The melt shop in Sheffield continues producing material for long products. The Copper tube and Brass division was sold to Cupori Group Oy in April 2008.[4]

At the end of September 2001, Outokumpu Technology bought the German Lurgi Metallurgie in Frankfurt. In June 2006, Outokumpu Technology was spun off as a separate entity Outotec.

On 31 January 2012, Outokumpu announced it would buy Inoxum, the stainless steel division of German ThyssenKrupp, for 2.7 billion euros. In November 2012, the European Commission found this acquisition would have created an EU market dominance for cold-rolled stainless steel flat products, with Outokumpu market share above 50%. The EC cleared the merger on the condition that the Italian Inoxum subsidiary Acciai Speciali Terni (AST) was excluded from the deal. According to Outokumpu sources, the company acquired Inoxum in December 2012.[5] Through Inoxum, Outokumpu acquired stainless steel mills in China, Mexico, Germany and in Alabama, USA. On 30 November 2013, Outokumpu announced that it would sell AST and certain service centers (the so-called "remedy assets") and VDM business to Thyssen Krupp and that at the completion of this deal, ThyssenKrupp would sell its 29.9% shares in Outokumpu, and sever all other "relevant links" between the two companies.[6] At the same time, on 30 November 2013, Thyssen Krupp announced the same: that it would reacquire AST and other so called 'remedy assets' as well as VDM (high-performance alloys) from Outokumpu, that it would sell its 29.9% shares in Outokumpu, and sever all other "relevant links" between the two companies. In February 2014, the EC cleared the AST and VDM acquisition by ThyssenKrupp.[7]

Production sites[edit]

Sweden[edit]

Avesta Sheffield was acquired 2001 and consists of a stainless steel mill with melting shop, hot rolling for heavy plates, hot rolling for 2000 mm width coils by Steckel-mill and cold rolling mills. Avesta developed special stainless steel grades, high-alloy austenitic and duplex grades, optimized for good formability, weldability and high corrosion resistance.[8] Avesta has a long history in steelmaking, similar to Sheffield in the UK.

Thin Strip Nyby (see also Nyby bruk) produces cold rolled stainless steel, concentrating on special grades, part of the Special Coil business line.[8] Nyby Ironworks in Torshälla was founded in 1829 by Adolf Zethelius, but ironworking on the site is first documented in the 15th century when the Bishop of nearby Strängnäs founded hammer forges by the waterfall near Nyby.

Finland[edit]

OTK's largest production facilities are located in the so-called "integrated mills of Tornio Works", in the small Finnish town Tornio on the coast of Gulf of Bothnia. Tornio Works produces hot rolled and cold rolled coils and sheets cut from coil, with an annual output of one million tonnes. The site consists of ferrochromium smelting, two steel-melting shops, a hot rolling mill and two cold rolling mills. The steel works were built in 1975–1976. The first stainless cast was made in May 1976, week 19, thus it has got the heat number 61901.The main marketing area is the EU. Up to 85% of the products are exported all around the world. In March 2011 5 employees of Tornio works were alleged to have laundered money (between EUR 69000 and EUR 13 714 000) related to exports to Russia between 2004 and 2006 per the District Court of Kymenlaakso in Kouvola. ML Tornio Court Hearings. In June 2011, the Court dismissed charges and ordered the Finnish State to compensate OTK with EUR 1.2 million for its legal costs. The State Prosecutor appealed against this judgement and in February 2012 legal proceedings commenced in Kouvola Court of Appeal per OTK's 2011 internal audit report[9] On 19 April 2012, the Court dismissed all charges. to which Finland’s state prosecutor filed a petition for leave in June 2012, to appeal to the Finnish Supreme Court.Kemi mine in Keminmaa near Tornio provides chromite, the raw material for chrome, needed to make stainless steel. In 2012, the quantity of chromite was estimated to a depth of one kilometer, totaling some 105 million tonnes.[8]

United Kingdom[edit]

The so-called "integrated site in Sheffield", includes a melt shop, continuous casting, a bar finishing facility and rod mill which are part of OTK's Long Products business, also a stocking, processing and distribution center. According to OTK's website, "Sheffield produces stainless steel coil, plate, sheet, rod coil, bar and rebar as well as semi-finished products such as slab, bloom, billet and ingot in wide range or grades, specializing in duplex grades."[10] After English metallurgist Harry Brearley had cast a steel alloy resistant to acidity and weathering in 1913, the English stainless steel industry was born. In 1950 Firth Vickers (see Firth and Vickers) and Samuel Fox set up joint works for cold rolling stainless steel at Shepcote Lane, Sheffield (government restrictions then prevented both firms importing the equipment from the United States)and marketed their stainless steel under the Staybrite brand. In 1967 the industry was nationalized, with the stainless steel operation of the business subsequently branded as British Steel. Outokumpu's original three sites in the UK were in Sheffield, Stocksbridge, and Blackburn. In 2005 the cold rolling and finishing units, Coil Products Sheffield on Shepcote Lane were closed, with the loss of over 600 jobs. Production ceased in the first half of 2006. The company continued the melting shop, special strip cold rolling and finishing, bar rolling, and UK distribution. At the end of March 2008 the Stocksbridge site production ceased after 80 years, with work transferring to its Meadowhall site.

Germany[edit]

As of 2013 there were sites in Krefeld, Benrath, Dahlerbrück, Dillenburg and a melt shop in Bochum. The Krefeld mill with 100 years of experience in stainless steel production, closed its melt shop in December 2012 and re-focused on cold rolling and R&D. The Benrath cold rolling mill was to relocate to Krefeld, to make a range of grades, dimensions and surface finishes. The Dahlerbrück cold rolling mill is located in Sauerland producing precision strip and looks back on a 300 year tradition of iron and steelmaking. The cold rolling mill in Dillenburg specializes on surface finishes for example in architecture, building and construction.The Bochum melt shop is on fast track for closure since October 2012, to close by 2014.[11]

U.S, and Mexico[edit]

A so-called "integrated stainless steel mill" exists in Calvert, Alabama melting and rolling coil, a hot rolling mill in New Castle, Indiana. A plant in Wildwood, Florida produces pipes and tubes and one in Richburg, South Carolina manufactures bar products. A cold rolling mill in San Luis Potosí (Mexico) produces "coil, strips, sheets, circles and plate materials".[12]

Organization[edit]

The company is led by a board of eight directors, and a'leadership team' of 7 men.[13]

References[edit]

  1. ^ a b c d e f "Annual Report 2013". Outokumpu. Retrieved April 23, 2014. 
  2. ^ "Outokumpu fact sheet". outokumpu.com. Retrieved 25 February 2014. 
  3. ^ "Luvata in Russia". Retrieved 1 April 2014. 
  4. ^ "Outokumpu's remaining copper tube assets sold to Cupori Group". Retrieved 18 July 2008. 
  5. ^ Outokumpu (28 December 2012). "Outokumpu has completed the Inoxum transaction and assumes the leading position in the stainless steel industry". Stock Exchange Release. Espoo,Finland. Retrieved April 23, 2014. 
  6. ^ Outokumpu (30 November 2013). "Outokumpu announces comprehensive measures to strengthen balance sheet and divests Terni and VDM to ThyssenKrupp". Stock Exchange Release. Espoo, Finland. Retrieved April 23, 2014. 
  7. ^ European Commission (12 February 2014). "Mergers: Commission clears reacquisition of Acciai Speciali Terni and VDM by ThyssenKrupp, concluding the remedy implementation process following the Outokumpu/Inoxum merger". Press release. Brussels. Retrieved 25 February 2014. 
  8. ^ a b c "Outokumpu production sites in Sweden". outokumpu.com. Retrieved 25 February 2014. 
  9. ^ "Corporate Governance, Risk management, Internal audit". outokumpu.com. Retrieved 25 February 2014. 
  10. ^ "Outokumpu production sites in the UK". outokumpu.com. Retrieved 25 February 2014. 
  11. ^ "Outokumpu production sites in Germany". Retrieved 25 February 2014. 
  12. ^ "Outokumpu in Americas". Retrieved 25 February 2014. 
  13. ^ "Outokumpu's organization". Retrieved 25 February 2014. 

External links[edit]