Annual Report 2010 - Outokumpu

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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