During spring 2012, Ovako will initiate an extensive modernisation project at its tube mill in Hofors. Including a comprehensive rebuild and upgrade of the tube mill, the modernisation work will continue for about three years until 2015. The total value of the investment is estimated at SEK 115 million (close to EUR 13 million) and it will create new market opportunities for Ovako in Europe. A significant part of the new technology to be implemented has been developed locally by Ovako. It is geared toward improving the tube mill’s quality, productivity and capital efficiency.
The tube mill investment is part of Ovako’s strategic plan which focuses on improving the competitiveness of operations further to gain more market share in Europe, in particular. With its niche production of components, Ovako is in a good position to increase its market share especially in Europe. This will be achieved through continued focus on production and delivery precision, a stronger marketing organisation and targeted investments in production machinery that will improve quality and open up new market opportunities.
“In addition to strengthening our existing operations in the long term, the new technology involved in this investment will also allow us to take on new business from industries such as the transport, oil and gas, engineering and bearing industries,” says Ovako Tube and Ring’s President Carl-Michael Raihle.
“Through our new cost-efficient solutions and highly advanced manufacturing we will also be able to meet customers’ increasing demands and thus further strengthen our position in Europe,” adds Raihle.
For more information, please contact:
Viktoria Karsberg, Head of Group Communications, + 46 70 209 93 96
Carl-Michael Raihle, President Ovako Tube and Ring, +46 72 541 14 40
Press release in English (pdf)
Pressmeddelande på svenska (pdf)
Lehdistötiedote suomeksi (pdf)
Ovako is a leading European producer of long special steel products for the heavy vehicle, automotive and engineering industries. Our production covers low-alloy steels and carbon steels in the form of bars, tubes, rings and pre-components. The company has 14 production units and several sales companies in Europe and the USA. Net sales in 2011 were EUR 1,121 million and the number of employees was 3,239. Total steel production capacity is 1.3 million tonnes per year.