Finland


	The Japan Times WORLD EYE REPORTS FINLAND

©THE JAPAN TIMES	Sunday, March 10, 2002

Vanguard at the top of the world

It can get very cold during the winter just 20 miles from the Arctic Circle, but you wouldn't know it from the level of activity in Tornio. In this town on the edge of Lapland in northern Finland, AvestaPolarit has built one of the world's most advanced stainless steel works. In terms of capacity, the plant is currently being expanded into the world's largest single stainless steel plant.

"Once our newest single line cold rolling mill comes online, the efficiency and capacity gains will greatly benefit our market position in cold rolled steel," said Niilo Suutala, managing director of the Tornio plant.

Currently undergoing a major $700 million investment program, the facility will increase its melting capacity to about 1.65 million tons per year, up from the current 650,000 tons. Simultaneously, coil production will increase to one million tons a year.
AvestaPolarit Chief Executive Ossi Virolainen oversees one of the world's largest metal producers.

"Another advantage we have is that here in Tornio we are next to the European Union's only operating chromium mine," Suutala explained. "This is especially advantageous given that chromium resources are concentrated in only isolated pockets around the world, notably in Africa. Our own mine supplies feed to our ferrochrome plant, operating on the same site as the steelworks. This close integration enables us to use molten ferrochrome in the production of our stainless steel."

The fully integrated mine-to-mill concept renders AvestaPolarit's Tornio operations considerable advantages in the form of self-sufficiency in critical ferrochrome raw material, as well as energy and logistic savings. It also brings the AvestaPolarit Group closer to its broader goal of being the world's lowest-cost stainless steel melt unit.

In addition to the melting shop expansion, AvestaPolarit is also constructing the world's longest single line process for cold rolling steel in Tornio. "When our new line is active, then cold rolling, annealing, pickling, and skin passing will all be accomplished in one line," continued Suutala.

"The gains in efficiency through this process will allow even further reductions the cost to our customers while at the same time increasing our product pallet," boasted Ossi Virolainen, president and CEO of AvestaPolarit.

Formed from the merger of AvestaSheffield and Outokumpu Steel in 2001, AvestaPolarit is a new breed of company designed specifically to do business in the increasingly competitive global stainless steel market.

"This merger has benefited both companies, opening up new prospects for growth in previously unexplored markets," said Virolainen. "We are a big, growing player in the coil products market, and we are also focusing on further strengthening our position in many niche markets for special products such as quarto plate, long products, tubes and fittings, and precision strip. Europe has traditionally been our main market, but we see Asia as a region in which we will step up our activities in the coming years."

A strong presence in the local markets is an important part of the company's formula for success. The AvestaPolarit Group's worldwide sales network encompasses either their own sales offices or dedicated representatives in over 50 countries. Additional warehousing and processing facilities in key markets guarantee short lead times and valued-added services to meet increasingly stringent customer demands.

"As the customer becomes more technically demanding, our products must meet more exacting standards in order to be compatible with their automated equipment," Virolainen commented. "Here, our strength in R&D plays a central role. As customers seek to maintain smaller inventories, we must be able to deliver what we promise when we promise it. This has brought about an increased focus on our logistics network, in areas like just-on-time delivery."

Perhaps the greatest asset of the company, however, is its reputation. Virolainen concluded, "AvestaPolarit means quality, service, and value. This is a reputation you must earn and continually prove to the customer."

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