Outokumpu Delays U.S. Cold Rolling Expansion, Focuses on Efficiency Gains Amid Tariff Changes

Outokumpu Delays U.S. Cold Rolling Expansion, Focuses on Efficiency Gains Amid Tariff Changes

(IN BRIEF) Outokumpu has announced its decision to delay expanding its cold rolling capacity in the U.S., focusing instead on achieving an 80-kiloton increase in the Americas business area by 2025 through efficiency improvements. This decision follows a feasibility study and the impact of newly introduced steel tariffs. Outokumpu remains committed to the U.S. market but is closely monitoring the effects of the tariffs. The company continues to view the U.S. as an attractive long-term market. Outokumpu’s operations in the Americas include facilities in both the U.S. and Mexico, with significant cold rolling capacity already in place.

(PRESS RELEASE) HELSINKI, 13-Feb-2025 — /EuropaWire/ — In its strategic plan for the next phase starting in 2026, Outokumpu has outlined its goal to further strengthen its market presence and expand its global operations. As part of this strategy, the company had previously signaled its intention to increase its cold rolling capacity. However, following a comprehensive feasibility study, Outokumpu has decided not to move forward with the expansion of its cold rolling capacity in the U.S. at this time. Instead, the company will focus on achieving an 80-kiloton increase in cold rolling capacity within the Americas business area by 2025, through targeted investments aimed at removing bottlenecks and improving productivity. As of the end of 2024, Outokumpu is on track to meet this target, with a 65-kiloton increase already realized.

The decision comes amid the backdrop of new steel tariffs introduced in February 2025, which may influence the company’s strategic planning. While Outokumpu remains committed to the U.S. market, it is closely monitoring the effects of the expanded 25% import tariffs on steel and certain derivatives. Despite these uncertainties, Outokumpu continues to view the U.S. as an attractive market and plans to maintain a strong position there over the long term.

Kati ter Horst, President and CEO of Outokumpu, remarked, “We have a solid foundation in the U.S. and continue to see it as a key market. However, given the unpredictable market conditions and the surge in imports over the past few years, our feasibility study did not support making a capital-intensive investment in cold rolling capacity at this point. This allows us to allocate resources toward other strategic areas, while we explore long-term options for growth, including in the U.S.”

She added, “Over the past five years, import penetration, particularly from Asia, has nearly doubled in the North American market, significantly affecting our decision not to expand production capacity right now. However, as the new tariffs may reduce import pressure, we are closely monitoring the situation. While we support free trade, it’s essential to ensure a level playing field in both the U.S. and Europe.”

Outokumpu operates integrated stainless steel production facilities, including melt shops and rolling operations, in both the U.S. and Mexico. In its Americas business area, the company boasts a combined melting and hot rolling capacity of around 900 kilotons, with an additional 600 kilotons of cold rolling capacity spread between the U.S. and Mexico.

Media Contact:

Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 40 071 9669

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Outokumpu media phone +358 40 351 9840 / e-mail media(at)outokumpu.com

SOURCE: Outokumpu