The Swedish steel producer Ovako has invested €11.5 million in a new vacuum degassing facility which is currently under construction in Smedjebacken, Dalarna County, Sweden.
The vacuum degassing plant will be inaugurated in 2019 to meet increased demand for high quality steel solutions. The investment – one of the company’s largest in the past ten years – is expected to open up new business opportunities in the automotive sector and other growth areas.
“Global demand for high-tech steel solutions is rising coupled with increased expectations on sustainability and flexibility. To meet customer requirements and strengthen our competitiveness we will further invest in our production facilities,” says Marcus Hedblom, CEO, Ovako.
New horizons with Japan’s NSSMC
In June 2018, Ovako Group was acquired by the Japanese steel conglomerate Nippon Steel & Sumitomo Metal Corporation from its previous owner Triton. The announcement confirmed that the company will continue to operate under the Ovako brand as a subsidiary to NSSMC.
Vacuum degassing is a key process in steel production that reinforces steel properties, cuts energy consumption and reduces carbon footprint.
“We are delighted to be able to further develop our customer offering in specialty steel for a worldwide market. The new degassing plant represents a step toward even greater quality and improved sustainability,” adds Richard Qvafort, Business Area Manager, Smedjebacken-Boxholm, Ovako.
Ovako’s vacuum degassing plant in Smedjebacken is expected to be operational in Q2 2019.
Ovako is a leading European producer of engineering steel for customers in the bearing, transport and manufacturing industries. The company has nine production sites, of which five are located in Sweden, and is represented in more than 30 countries.
Since June 2018, Ovako is part of the Japanese steel corporation Nippon Steel & Sumitomo Metal Corporation with 92,000 employees worldwide and a revenue of EUR 37 billion.