Finland-based stainless steel producer Outokumpu has announced that for the current year it estimates its capital expenditures (capex) to be approximately €150 million, down slightly from €154 million recorded in 2015, and to remain well below €200 million annually in the coming years. The company’s expected capex profile for the coming years comprises maintenance expenditure (approximately €70-80 million annually), ongoing development projects (approximately €40-70 million annually), and minor investments in efficiency improvements with short payback time.
According to Outokumpu’s strategic plan which covers the period from 2016 to 2020, debt reduction is a key priority and the company targets €1.2 billion net debt by the end of 2017. The debt reduction will be realized primarily through the expected improvement in operational performance, as well as a significant uplift in net working capital efficiency.
Meanwhile, the company also aims to reach an underlying EBIT of €500 million by the end of 2020.