Sweden-based steelmaker SSAB Europe plans to reorganize its tube production in an effort to modernize and increase its output, the company said Monday.
The plan includes modernizing the existing production lines at the Hameenlinna Tube Mill over the next few years as well as a program to modernize and develop tube production in the Oulainen, Pulkkila and Toijala sites in order to increase production volumes.
SSAB Europe's steel mills currently have an annual production capacity of 4.9 million mt, but the company declined to say by how much the changes would increase production.
A possible end result of this reorganization could also be the closing of a mill in Lappohja.
"Worker consultations concerning possible workforce reduction are being initiated at the Lappohja Mill for financial and production-related reasons and for reasons arising from reorganization of the company's operations. The consultations may result in the closure of the Lappohja Mill. The consultations affect the entire personnel at the Lappohja Mill, about 115 persons," SSAB said.
The plan to develop production lines at the Hameenlinna Tube Mill will result in more competitive production of even higher quality tubes to meet the needs of, for example, the construction, mechanical engineering, automotive and furniture industries, the company said.
Modernization of spirally welded tube production is being studied in Oulainen.
A long-term development plan to improve safety and productivity is being drawn up for the entire tube mill in Pulkkila. Modernization and diversification of the production lines in Toijala is also being considered.
SSAB Europe produces high-quality steel strip, plate and tube products. SSAB Europe's focus is on the Nordic markets, along with selective growth areas, such as providing high-strength steels to the global automotive industry. SSAB Europe's main production sites are located in Raahe and Hameenlinna, Finland, and in Lulea and Borlange, Sweden, according to the company website. Production is based on integrated blast furnace processes.
