Update from investor site visit to Kemi and Tornio
Outokumpu hosted today, October 7, 2015, a site visit for institutional investors to the Kemi mine and Tornio stainless steel plant in Finland. Altogether 26 investors and analysts joined the annual visit.
commented the status of Outokumpu turnaround: “Benefits of the merger are visible – company losses have halved each year, synergies and cost savings are on target, and even ahead of the original schedule. However, we also know how much work we still have ahead of us, and we see significant further potential to improve fundamental operational performance in all our businesses, reduce debt and to strengthen the company’s financial position. Financial stability is one of the key targets for management and we are fully committee to reduce the company net debt to <1.5 bn euros by the end of 2017. Both our liquidity and our gearing have developed stable and we are neither getting close to any of our respective covenants nor are requiring any additional short term financing.”
Outokumpu assets in Kemi and Tornio, including the ferrochrome operations, are key to Outokumpu competitiveness and the European set up. The restructuring of the European asset base is progressing as planned and enabling higher utilization in Tornio and Avesta. The earlier technical issues in Tornio have been thoroughly analyzed and addressed and production is back to normal levels. Optimization and debottlenecking of the production continues.