Outokumpu plans to change its segment structure as of January 1 by separating its ferrochrome operations from its Business Area Europe unit as a new reportable segment, the Finnish stainless steel producer said Tuesday.
Outokumpu produces around 500,000 mt/year of ferrochrome from its Tornio operation in Finland, the majority of which, roughly 75%, is consumed in its own stainless steel production.
Chrome ore feed for the ferrochrome plant comes from the nearby Kemi mine.
"Ferrochrome operations are an integral part of Outokumpu's business, and will be managed separately," the company said in a statement.
"Coupled with Kemi mine, ferrochrome production gives us clear competitive advantage. The change in reporting practices will also increase transparency to our operations," it said.
In the new structure, Outokumpu will have four reportable segments -- Europe, the Americas, Long Products and Ferrochrome. Outokumpu's financial reporting will be changed accordingly as of the first-quarter 2018 interim statement.
The company's ferrochrome segment had sales of Eur458 million ($537 million) in the first nine months of 2017, of which Eur354 million was intra-group sales. This compares to full-year 2016 sales of Eur371 million, of which Eur269 million was intra-group sales.
