Annual Report 2010 - Outokumpu

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Operations and our people
Acting responsibly in difficult times is of particular importance. We have continued to work on the Group's operational
excellence initiatives even though market conditions have been turbulent. I am very pleased to see that great progress
has been made in several areas. One piece of evidence of improved operational performance and our commitment to
responsible practices is the improvement in levels of safety, one of our focus areas in sustainability. In 2010, our losttime
accident frequency rate improved to 4.7 from its 2009 level of 5.9. This figure did not quite meet our target level of
below four, but the development is very encouraging. Further demanding targets have been set for the coming years,
with the ultimate aim being a rate of zero. Improving safety contributes to improvements in quality, costs and on-time
delivery – not to forget the wellbeing of people.
We had our new commercial organisation fully functioning in 2010. The overall aim is to give our customers excellent
service by being able to combine local, customer segment and product knowledge to our offering. Creating a stronger
commercial presence outside Europe is a high priority and one milestone in that ambition was the inauguration of a new
Outokumpu service centre in China.
Strategy
I am very excited about the long-term growth prospects for stainless steel. A sustainable material, it is an essential
element in solutions to many of the global macro developments and challenges we face, such as increasing urbanisation
and the need for cleaner air, clean water and renewable sources of energy.
Our unique strengths mean we are well positioned to capture the market opportunities. The Group's integrated
production facility at Tornio, which includes our own supply of ferrochrome, is a global cost leader in standard grades.
Our position in specialty products is equally strong and exemplified by our global market leadership in duplexes. Also our
efforts in building excellence in both customer relationships and the Group's operations give us strength to capture the
market opportunities.
Leveraging on our strengths, we did clarify our strategic priorities. New targets include improving loadings at Tornio,
accelerating the transition towards special products and seizing existing growth opportunities. Doubling our ferrochrome
capacity is an exciting project, both in its financial scope and because we will be entering a new global market. Worldclass
levels of energy efficiency and reduced emissions also make a good project from an environmental viewpoint.
Sustainability has always been – and continues to be – at the core of our strategy. Over the years, Outokumpu has been
a determined leader in environmental performance in the industrial sector. An independent study has demonstrated that
our products have the smallest carbon footprint in Europe. Our commitment to the people who work for us – providing a
safe workplace with opportunities for skills development – is a cornerstone of our efforts to further improve the
sustainability of our operations.
Sustainability is a continuing journey and the recognition we receive for the Group's performance in this area is
encouraging. While I am pleased with the progress we have already made, more ambitious and demanding objectives for
different aspects of sustainability are being set. For example, according to our Energy and Low-carbon Programme,
launched in 2010, our target is to reduce our carbon emissions by 20% by 2020.
I was very pleased that Finland's parliament awarded Fennovoima, in which Outokumpu is a major shareholder, a
decision-in-principle to begin planning a nuclear energy project in Finland. By providing electricity supplies at stable
prices, this project will support our increased ferrochrome production capacity and also contribute towards further
reducing the carbon footprint of the electricity we use.
Outokumpu Annual Report 2010 – Outokumpu – CEO's review