Minews - US plant is key to Outokumpu growth in2014, says ceo

(Minews) - The ramp-up at Outokumpu’s Calvert, Alabama facility in the USA is the key to the stainless steel producer’s growth prospects in 2014, according to ceo Mika Seitovirta.

Outokumpu has been able to “gradually” reduce losses at the Calvert unit, Seitovirta said during the company’s quarterly earnings conference call on Thursday February 13.

The Espoo, Finland-based company wants the facility to capitalize on forecast growth of 4% in the North American stainless market and “reassuring low energy prices” that will lead to “positive end demand for stainless steel in the USA”, Seitovirta said.

“Our priorities for this year are very clear,” he said. “Once more, the number one thing is the ramp-up of Calvert. It’s the biggest lever in our profitability for this year.”

Seitovirta said it was no secret that the majority of the company’s losses were a result of its Calvert operations. Outokumpu reported a net loss of more than $498 million in the fourth quarter on sales of more than $2 billion.

“It’s a typical ramp-up picture where, until you go over certain levels of volumes, you will have losses,” he said.

“At the same time, we can see that in the Calvert operations our yields are improving,” he added.

Outokumpu said it was targeting breakeven earnings before interest, taxes, depreciation and amortisation (Ebitda) for the full year, compared with an Ebitda loss of almost $226 million in 2013.