Raw materials optimisation

Following an assessment of the market situation in 2009, a decision was made that Outokumpu would not cover all its primary metal needs through long-term contracts. As there was a surplus of raw material on the market and the associated terms and conditions were attractive, this proved to be a wise move. The Group continued using a very high proportion of its raw material consumption in the form of recycled steel and the use of these environmentally friendly raw materials resulted in lower raw material costs.

Very good progress was made in optimising the Group's use of raw materials in 2009, with significant cost benefits being achieved. Raw materials optimisation will continue to be a focus area in 2010.

Outokumpu's raw material stocks were considerably reduced in 2009. Close monitoring of the stocks will continue in 2010 with the aim of achieving optimal stock levels.