Ovako Strengthens Steel Production with €6 Million Modernization Investment
Ovako, a renowned producer of high-quality steel for demanding applications, is embarking on a significant modernization of its Bright Bar facility in Hällefors, Sweden. This major investment, amounting to over €6 million, is part of Ovako’s ongoing commitment to enhancing production efficiency, improving steel quality, and securing its long-term competitiveness in the global steel market.
Upgrading for Greater Efficiency: The 2024 Improvements
The modernization project is being rolled out in phases, with the first upgrades scheduled for the summer of 2024. As part of this initial phase, Ovako will be introducing new cutting, chamfering, and milling equipment to replace older machinery. This state-of-the-art equipment will enable Ovako to carry out all machining processes in-house, effectively reducing the need for external handling and minimizing the transportation risks associated with moving materials between facilities.
According to Filip Gran, Section Manager at Ovako, the new equipment is designed to streamline operations, allowing the company to deliver higher quality products while improving efficiency across its operations. These improvements will ultimately benefit customers, ensuring that Ovako remains at the forefront of Bright Bar production.
The 2026 Milestone: A New Peeling Lathe for Expanded Capabilities
Following the success of the 2024 upgrades, Ovako is set to launch the next major phase of its modernization plan in 2026. This will include the installation of a new peeling lathe, a key piece of equipment that will further enhance the facility’s capabilities. The new lathe will allow Ovako to process diameters up to 130 mm, expanding the product range and enabling the production of larger steel bars for demanding applications.
Mikael Haraldsson, Production Unit Manager for Bright Bar, highlights that this investment reinforces Ovako’s standing as a leader in the Bright Bar sector. By expanding the range of products and boosting productivity and quality, the company is ensuring it remains competitive while opening up new opportunities for growth and market expansion.
Commitment to Sustainability and Innovation
In addition to improving production capacity and product quality, Ovako’s investments are closely aligned with the company’s core values of sustainability and innovation. The modernization of the peeling bar operations will contribute to a more efficient manufacturing process, reducing the need for internal transportation and lowering environmental impact. This is an important step toward making Ovako’s production process even more sustainable, with a focus on reducing waste and optimizing resource utilization.
Rickard Qvarfort, Business Unit Manager for BU Hofors-Hellefors, emphasizes the critical importance of the Bright Bar production flow to Ovako’s overall profitability. By enhancing its production lines with these modern technologies, Ovako is not only securing its future operations but also reinforcing its position in the competitive global steel industry.
Long-Term Impact on Ovako's Competitiveness
These investments are pivotal in ensuring Ovako’s continued growth and leadership in the steel industry. With the introduction of new technologies and the expansion of product offerings, Ovako is strengthening its manufacturing capabilities to meet the ever-evolving needs of its global customer base. By focusing on quality, efficiency, and sustainability, Ovako is paving the way for long-term success in the competitive world of steel production.
Ovako’s investment strategy clearly demonstrates the company’s unwavering commitment to remaining a key player in the Bright Bar market, and its dedication to innovation and sustainable manufacturing practices is setting it up for continued success in the future.
For more information or inquiries, please contact Ovako directly.
