Sweden: Uddeholm to Invest EUR 11.3 Million in ESR Capacity, Conversion to LNG

On February 28, the board of Uddeholms AB decided to invest a total of 100 million SEK (€11.3 million) in upgrading the company’s production capability in Hagfors, Sweden. The investments are in line with the growth plan the company, which is a leading manufacturer of steel for industrial tools, has established for the coming years.

In order to increase production capacity and thereby grow within the market segment defined by highly sophisticated steel grades, the company will invest in a new electroslag remelting (ESR) furnace—the ninth—in Uddeholm.

The other part of the investment will enable Uddeholm to shift its energy consumption from oil and gas to liquid natural gas (LNG), an alternative energy source that will provide better financial and environmental benefits. By converting to natural gas, the company will reduce its carbon dioxide emissions. This will also have a positive effect with respect to upcoming requirements regarding nitrogen oxides (NOx) produced during combustion, which is necessary in the light of Uddeholms’ growth plan.

Negotiations with various contractors are in progress.

Uddeholms AB has an annual turnover of approximately €230 million and employs some 3,100 people around the world, including 900 in Hagfors.

[mappress]

Source: Uddeholm, March 16, 2011;