Annual Report 2010 - Outokumpu

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Research and development
Product safety
Outokumpu's research and development operations involve process development, product development and application
development. In process development, the aim is improved energy- and cost-efficiency in the Group's production
processes while securing high-quality and consistent products and reductions in the environmental impact of our
operations. In product development, the focus is on cost-efficient low-nickel and no-nickel stainless steel grades and on
added-value special products such as high-corrosion-resistance, heat-resistant and high-strength stainless steels. Other
important areas in R&D include applications development and providing our customers with comprehensive technical
support. The Group's R&D function operates in close co-operation with Outokumpu's commercial organisation and is a
source of valuable advice regarding material selection, properties and fabrication techniques. Outokumpu R&D
personnel are also involved in joint projects connected with customers' product development activities.
Outokumpu invested EUR 22 million (0.5% of net sales) in research and development in 2010 (2009: EUR 19 million and
2008: EUR 20 million). The Group's two research centres are located in Tornio, Finland and Avesta, Sweden. R&D is
also carried out at Outokumpu production sites. The Group R&D operations employ almost 200 professionals.
At the Tornio Research Centre, the focus is continuous improvement of production processes and the development of
no-nickel ferritic steel grades. In 2010, delivery volumes of ferritic grades developed positively. One important recent
development is the bright-pickled 2BB ferritic material produced at Tornio Works on the recently-modernised annealing
pickling line. The surface finish of 2BB is a perfect alternative in applications which require a bright surface combined
with good mechanical properties. Typical applications for 2BB are in the catering & appliances segment and in the
architecture, building & construction segments.
At the Avesta Research Centre, special stainless steel grades including high-alloyed corrosion-resistant and heatresistant
grades and high-strength, corrosion-resistant duplex steel grades are under development. In 2010, Outokumpu
launched LDX 2404 ® , a new duplex stainless steel grade which features higher mechanical strength than other major
duplex grades currently on the market. LDX 2404 ® is well suited to applications where its excellent mechanical properties
and good corrosion resistance can be utilised – in storage tanks, in road and rail tankers, in building and construction
projects and in a variety of industrial processes. Lower-weight, lighter designs mean cost-efficient projects requiring less
material, and ongoing benefits include savings in transport and maintenance costs as well as reductions in energy
consumption.
A broad expertise
Outokumpu's research and development organisation has extensive, in-depth experience and knowledge of the
properties and use of stainless steels. This knowledge is utilised in both application development and in the technical
support we offer our customers, helping them to select optimum steel grades and optimise their manufacturing
processes. Areas of particular interest are lightweight structures which exploit stainless steel's high strength and low
lifecycle costs, as well as applications connected with green energy and clean water solutions. As a part of our technical
support activities, the first edition of the Outokumpu Welding Handbook was published in August 2010. Welding is the
most important process when assembling stainless steel components. Through this new publication, Outokumpu is
contributing to existing knowledge and offering hands-on advice on welding methods and processes, as well as providing
designs and design information based on the use of stainless steel.
Outokumpu conducts joint development projects in co-operation with industrial partners, universities and research
institutes within national and European research programmes. Together with representatives of other stainless steel
producers, Outokumpu R&D personnel participate in activities in ISSF (the International Stainless Steel Forum), Eurofer
(the European Confederation of Iron and Steel Industries) and EuroInox (The European Stainless Steel Development
Outokumpu Annual Report 2010 – Business – R&D