Ovako AB

Ovako invests SEK 115 million in new technology to achieve growth in Europe

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.