Arctic Business Forum 2015
Stainless Steel from North
Martti Sassi SVP –Production in Tornio Business Line Outokumpu
12.03.2015 Continued growth for stainless steel globally
Outokumpu market share 2014: EMEA ~30% NAFTA ~22% APAC ~1%
Data source: SMR, January 2015 Real demand for total stainless steel (rolled & forged products, excl. 13Cr tubes, profiles) Global stainless steel consumption by customer segments in 2014
2,8 % Consumer goods&Medical
8,2 % Chemical/Petrochemical &Energy
14,8 % Automotive&Heavy 46,9 % Transport
10,6 % ABC&Infrastructure
Industrial&Heavy 16,7 % industry
Others
Total consumption 36,9 Mton
Data source: SMR, January 2015 Global stainless steel slab production capacity and production by regions 57 58 55 [million tonnes] 53 54 51 48 RoW 44 Americas 42 43 41 3 Europe 40 3 Asia 38 38 38 3 3 36 3 3 global slab capacity 35 35 3 3 2 3 6 32 32 2 3 6 31 3 6 29 30 2 3 6 5 27 2 2 6 25 26 1 2 5 22 23 1 2 5 22 21 2 20 21 21 21 6 20 19 19 6 18 3 2 2 2 6 15 16 2 15 2 5 31 33 2 6 6 30 2 7 27 28 2 2 6 25 26 7 23 7 20 6 6 6 16 18 14 10 11 12 8 9 6 6 6 7
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015f 2016f 2017f 2018f 2019f 2020f
Source: SMR February 2015 TOP10 stainless steel producers
Melting capacity, Mton 7 of TOP10 players are 5,0 coming from Asia 4,0 3,0 2,0 1,0 0,0 Outokumpu global footprint
Finland Modern fully integrated chrome mine, ferrochrome works and stainless steel Sweden production unit and and R&D center. Specialty stainless Group HQ. production units and an USA R&D center. Cost efficient integrated mill Germany (Calvert). High performance High quality stainless stainless plate, bar and pipe steel production and production units. R&D units. UK Integrated specialty stainless production site, specializing in long products.
China Cold rolling and service centers. Mexico Cold rolling mill in San Luis Potosí, Mexico. Focus on ferritics and tailored solutions. Outokumpu in Kemi-Tornio area – unique integrated production complex
Kemi Mine
Chromite concentrates
Ferrochrome Works
Ferrochrome Stainless and mild steel scrap Steel Melting Shop Ni-, Mo –alloys, lime etc. Slabs
Hot Rolling Mill
Black Hot Coils
Cold Rolling Plant
Cold Rolled and white hot rolled products
Finishing Plants in Tornio and Other Steel Mills Terneuzen (NL)
Own service centers and customers Products from Tornio
Stainless steel finished goods Stainless steel semi products to (Coils, sheets and plates) German cold rolling plants
Ferrochrome products Slag products
Kemi Mine - The only chrome mine in the EU -area
Company Presentation March 2013 9 Tornio - The most integrated stainless steel plant in the world
Company Presentation March 2013 10 Outokumpu operations in Tornio
• 2200 Outokumpu’s employees (including Kemi mine) • 300 employees of service providers work at the plant area on a daily basis • Main service providers at site are Tornion Voima, SMA Mineral, AGA, Tapojärvi and several local maintenance service companies • The indirect employment within the whole region is estimated to be 7000-8000 people.
• FeCr capacity is 530 ktons/a (globally 4 %) • Stainless steel melting capacity 1450 ktons (globally 4 %) using more than 1 million tons recycled stainless and mild steel as raw material • Export share of products is over 95 %. • As a by-product 1 million CE-marked slag products in 2014
• Own harbour (traffic 2.8 Mton and 470 vessels in 2014). • 5 time-chartered vessels operate continuously between Tornio and Terneuzen plant in Netherland
• Tornio site is the biggest single electricity consumer in Finland (abt. 3 TWh annually i.e. 4 % of total consumption in Finland) Tornio Manga LNG project
• Outokumpu Group, Skangass Oy, SSAB and EPV Energy Ltd. have agreed to construct a new LNG off- grid import terminal into Tornio industrial area and harbor at Northern Coast of the Gulf of Bothnia. • Tornio Manga LNG-terminal utilizes the existing infrastructure of the industrial area to the full extent and will be replacing current energy forms i.e. propane and heavy fuel with LNG and will act as new form of energy for the power plant extension. • LNG commissioning will be late 2017 and actual deliveries will start in H1/2018 • Storage capacity for 50 000 m3 of LNG • Initial demand 400 000 m3 of LNG or 2,5 TWh for all the partners.
Shareholder Ownership % Outokumpu 45% Skangass 25% SSAB 25% EPV 5% Thank you for your attention!