Outokumpu Halts US Cold Rolling Capacity Expansion
Outokumpu Oyj announced on February 13, 2025, that it will not proceed with an investment to expand its cold rolling capacity in the U.S. at this time. The company will instead focus on targeted improvements to reach its capacity growth targets.
Steel producer Outokumpu Oyj has decided not to invest in expanding its cold rolling capacity in the United States, according to a February 13, 2025, announcement. The decision follows an extensive feasibility study, which concluded that a significant capital investment is not warranted in the current market conditions.
Despite halting the expansion project, Outokumpu remains on track to achieve its goal of increasing cold rolling capacity in the Americas business area by 80 kilotons by the end of 2025. This will be accomplished through focused debottlenecking investments and productivity enhancements, with 65 kilotons already achieved by the end of 2024.
The company noted that recent U.S. import tariffs on steel, implemented on February 10, 2025, could impact the market analysis. Outokumpu reaffirmed its commitment to the U.S. market and stated it will closely monitor the effects of the tariffs. The company will focus on operational efficiency and evaluating further strategic options for business development.
CEO Kati ter Horst cited a substantial increase in imports into the North American market over the past five years as a key factor in the decision. She also emphasized the importance of a level playing field, while supporting free trade. Outokumpu operates integrated stainless steel facilities in Alabama, U.S., and has cold rolling operations in San Luis Potosi, Mexico.