Annual Report 2010 - Outokumpu

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34 of which Tornio Works 29 -183 66 Non-recurring items in operating profit - - - Operating capital on 31 Dec 2 763 2 421 2 663 Return on operating capital, % 0.6 -10.2 -0.2 Capital expenditure 73 129 332 Depreciation 148 141 135 Personnel on 31 Dec 4 029 3 753 3 938 1 000 tonnes Deliveries of main products Cold rolled 615 486 628 White hot strip 299 248 297 Semi-finished products 268 196 340 Total deliveries of the division 1 181 929 1 265 Outokumpu Annual Report 2010 – Business – General Stainless
35 An efficient, integrated single-site operation Located in northern Finland, Tornio Works is one of the largest stainless steel mills in the world and also the world's most integrated single-site operation. It is the only stainless steel production facility in the world that is fully backwardsintegrated into the essential raw material, chrome, giving stainless its corrosion resistance. Tornio Works' main products are cold rolled and hot rolled 300-series austenitic stainless steel coils and sheets; ferritic grades are also part of the product portfolio. The integrated production process begins at the nearby Kemi chromite mine, continues in the Tornio ferrochrome smelter and proceeds through two stainless-steel melt shops, a hot-rolling mill and cold-rolling mills. The majority of finishing operations, like slitting and cut-to-length, are carried out both directly at the cold rolling mill in Tornio or in Terneuzen in The Netherlands. Annual production capacities at Tornio Works are: 1.65 million tonnes of melted products 1.60 million tonnes of hot rolled products 1.20 million tonnes of finished products from the cold rolling mills The majority of the stainless steel produced at Tornio is standard austenitic stainless containing nickel in addition to chrome and iron (300-series). Another important 300-series grade produced is the acid resistant austenitic stainless steel containing molybdenum. Outokumpu also produces 400-series ferritic stainless steel in Tornio. As ferritic grades do not contain nickel, prices for these products have traditionally been less volatile than those of the Group's main product, 300-series austenitic stainless steel. Outokumpu's production capacity in ferritic grades totals approximately 140 000 tonnes with current product portfolio. In 2010, Outokumpu introduced a new surface finish for a ferritic grade – 2BB. Some white-hot strip (annealed and pickled but not cold rolled) and black-hot band (hot rolled) material from Tornio is also delivered to both internal and external customers. Read more about new products introduced to the market. Research and development activities carried out at the Tornio Research Centre focus on process, product and application development. Read more about R&D. Tornio Works' competitive edge Tornio Works is Outokumpu's largest production unit and one of the world's most cost-efficient stainless steel operations. Production at Tornio Works accounts for approximately two thirds of the Group's total stainless steel production. Integration with ferrochrome production Chromium is an essential component in the production of stainless steel, as it gives the steel its corrosion resistance. It reacts with oxygen in the air to form a passive film of chromium oxide, preventing surface corrosion and blocking the spread of corrosion into the metal's internal structure. Outokumpu Annual Report 2010 – Business – Tornio Works
Page 1 and 2: Annual Report 2010
Page 3 and 4: Table of contents Outokumpu - an in
Page 5 and 6: Group Executive Committee .........
Page 7 and 8: 1 Outokumpu - an international stai
Page 9 and 10: 3 CEO's review 2010 was characteris
Page 11 and 12: 5 Next steps The managerial agenda
Page 13 and 14: 7 Group key figures 2010 2009 2008
Page 15 and 16: 9 Strategic themes Outokumpu's stra
Page 17 and 18: 11 Excel in operations Safe working
Page 19 and 20: 13 Management discussion of financi
Page 21 and 22: 15 € million Operating profit Gen
Page 23 and 24: 17 When the additional ferrochrome
Page 25 and 26: 19 also resulted in a substantial i
Page 27 and 28: 21 Group earnings per share totalle
Page 29 and 30: 23 € million Stainless steel base
Page 31 and 32: 25 Developing Outokumpu's corporate
Page 33 and 34: 27 A significant proportion of Outo
Page 35 and 36: 29 Market position In recent decade
Page 37 and 38: 31 amount of stainless steel consum
Page 39: 33 General Stainless - high-quality
Page 43 and 44: 37 chromium ore was found to extend
Page 45 and 46: 39 Long Products Sheffield The Shef
Page 47 and 48: 41 Specialty Stainless key figures
Page 49 and 50: 43 Special Coil and Plate Special C
Page 51 and 52: 45 Outokumpu Stainless Tubular Prod
Page 53 and 54: 47 Group level functions Outokumpu'
Page 55 and 56: 49 Headquarters in Belgium Outokump
Page 57 and 58: 51 Expansion of our service centre
Page 59 and 60: 53 Supply Chain Management Procurem
Page 61 and 62: 55 50% compared to 2009. The ferroc
Page 63 and 64: 57 Research and development Product
Page 65 and 66: 59 perfectly safe for use in equipm
Page 67 and 68: 61 Stainless is optimal for sustain
Page 69 and 70: 63 Environmental goals and results
Page 71 and 72: 65 Results 2010 Sheffield melt shop
Page 73 and 74: 67 Until the beginning of 2009, sla
Page 75 and 76: 69 Material balance Materials used,
Page 77 and 78: 71 Improving waste handling and pre
Page 79 and 80: 73 Primary actions included in the
Page 81 and 82: 75 Despite of protective actions ag
Page 83 and 84: 77 Stainless steel in innovations a
Page 85 and 86: 79 Emissions and effluents One of O
Page 87 and 88: 81 ficiation and clarification basi
Page 89 and 90: 83 Water - a natural resource for c
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85 Water withdrawal and discharges
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87 studies monitoring the prevailin
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89 Environmental investments furthe
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91 Outokumpu and stakeholders The s
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93 Goals for 2011 Improve HR report
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95 Personnel facts and figures Outo
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97 The US 330 321 403 Others 33 33
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99 Open communication Employee moti
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101 Compensation and benefits Outok
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103 Developing our people through c
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105 Health and safety Health and sa
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107 Everyone deserves a safe workin
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109 We value our stakeholders' opin
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111 Outokumpu and our customers - a
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113 Current and future employees Bo
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115 our home market Europe, resulte
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117 Production employees are repres
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119 Public sector support, sponsori
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121 Regulatory framework Outokumpu
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123 General Meeting of Shareholders
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125 To make other proposals to Gene
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127 Board committees The Board of D
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129 The CEO and Deputy CEO The Chie
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131 Group Corporate Management Outo
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133 Vice Chairman of the Board, Soi
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135 Key aspects of internal control
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137 Controller meetings were organi
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139 Risk management Outokumpu opera
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141 Strategic and business risks St
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143 Operational risks Operational r
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145 Both these financial risks and
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147 Good level of environmental man
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149 Climate change is taken serious
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151 Ethics, corporate responsibilit
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153 Internal audit monitors complia
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155 Outokumpu Annual Report 2010 -
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157 Solidium Oy 56 440 597 30.8 The
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159 Board authorisations Board Auth
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161 Shares subscribed with 2003B op
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163 programme for the earnings peri
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165 Information for shareholders An
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167 Stock exchange releases 2010 2
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169 Members of the Executive Commit
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171 Responsibility: HR strategy and
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173 Board member: Marzac Investment
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175 Based on its own assessment, Ou
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177 Risk management 4.10 Processes
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179 8 EN15 Species with extinction
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181 Human Rights Investment agreeme
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183 Fines for non-compliance PR9* c
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185 Measurement techniques Economic
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187 Days lost due to strikes is cal
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189 • Tested the completeness, ac
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191 8% from 2009. The clearly highe
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193 Profitability Earnings per shar
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195 During 2010, Outokumpu's net in
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197 Outokumpu's strategic prioritie
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199 Outokumpu is participating in t
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201 Outokumpu has been systematical
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203 completed in November 2010 and
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205 Short-term outlook Following th
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207 Opinion on the company's financ
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209 Diluted earnings per share, €
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211 Retained earnings 1 365 1 735 N
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213 Proceeds from sale of property,
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215 Key financial figures of the Gr
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217 Quarterly information Income st
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219 Share-related key figures 2010
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221 Definitions of key financial fi
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223 Income statement of the parent
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225 Share capital 311 309 Premium f
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227 Disposals of intangible assets
Page 235:
Outokumpu is a global leader in sta
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Annual Report 2010 - Outokumpu

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