The underlying demand for stainless steel continues to be subdued due to low investment and manufacturing activity as well as weak consumer confidence. Furthermore, the European stainless steel market has been burdened by the high volumes of low-priced Asian imports for some time. Therefore, I am delighted to see that the European Commission has acted decisively to enhance the competitive position of the industry in its home market by proposing the implementation of more effective safeguards as part of the Steel and Metals Action Plan. The proposed measures include the reduction of import quotas by nearly half, a 50% tariff on volumes exceeding the quota, and an introduction of the melted and poured principle. These policies are set to take effect by mid-2026 at the latest and are hopefully soon approved by the European Parliament and the Member States. With better safeguards and the implementation of the Carbon Border Adjustment Mechanism (CBAM) in January 2026, we would finally move towards creating a level playing field for the European steel industry and supporting the continuation of the green transition in Europe.
In the current market environment, we continue to take our own measures to improve our cost position and performance. We have started negotiations regarding the EUR 100 million cost-reduction program across the company. The main focus is on business area Europe and group functions, but all business areas will contribute to reaching the target by the end of 2027. Unfortunately, this is expected to impact some 650 full-time positions in the company.
Further, our EBITDA run-rate improvement and short-term cost savings programs are progressing according to plan. Since 2023, we have achieved EUR 336 million EBITDA run-rate improvements towards the EUR 350 million target by the end of 2025 and our short-term costs savings total EUR 42 million at the end of the third quarter, well on track towards the EUR 60 million target by the end of this year.
In the current geopolitical environment, access to critical minerals is a strategic topic around the world. Therefore, I am excited about taking the next step in scaling up an innovative proprietary technology by investing approximately USD 45 million in a new pilot plant in New Hampshire in the U.S., to produce critical carbon-free materials, such as chromium metal and enriched ferrochrome. This is a transformative investment and an essential part of our EVOLVE growth strategy, which aims to create a path to green metals through technology and our chrome mine — the only one in the EU area.
To enhance our strategy implementation, I have made a change in the Outokumpu Leadership Team. Since October 6, Johann Steiner, previously EVP, Strategy, Sustainability & People, has been leading business area Americas. We see Americas as a geographically interesting growth market beyond standard stainless steel, and Johann’s strong strategic background will offer great support to the team. The recruitment for Johann's successor is ongoing.
In Q3, our Group’s adjusted EBITDA was EUR 34 million, reflecting an 11% decrease in stainless steel deliveries from the second quarter, driven by weak underlying market demand and high volumes of Asian imports into Europe.
In business area Europe, adjusted EBITDA stood at EUR -12 million, and stainless steel deliveries decreased by 12% quarter-on-quarter. The European market continued to be sluggish, as we expected, and stainless steel prices were under pressure for the whole quarter.
In business area Americas, adjusted EBITDA was EUR 30 million, and stainless steel deliveries decreased by 6% compared to the previous quarter. Prices increased during the third quarter, but we have not yet seen a pickup in industrial activity and stainless steel demand.
In business area Ferrochrome, adjusted EBITDA amounted to EUR 21 million. Demand for our European, low-emission ferrochrome has remained solid. Sales volumes were somewhat higher than in the second quarter, but the result was negatively impacted by weakened U.S. dollar and higher variable costs, especially in electricity.
After a good safety performance until end of August, I regret to say that we had a very disappointing September with a major accident in Mexinox. Our safety performance weakened compared to last year and the total recordable incident frequency rate (TRIFR) was 2.6 in the third quarter, bringing the year-to-date TRIFR to 1.9 versus our target of 1.5. We have carefully analyzed the causes of the deterioration in safety performance and we are taking prompt actions to return to our targeted level. On the positive side, we maintained our very high recycled material content level of 97% and firmly proceeded towards our SBTi climate target.
Lastly, I want to thank our employees for their dedication during these challenging times, our customers for their loyalty and confidence, our suppliers for their valuable collaboration, and our shareholders for their ongoing support.