In the challenging year 2024, we generated EUR 177 million of adjusted EBITDA in a weak market with high import pressure. Stainless steel demand in Europe was historically low. We maintained our leadership, securing the top market position in Europe and second place in North America.
During the current weak stainless steel cycle, we will focus on the factors we can control to improve profitability and maintain a healthy financial condition. I am pleased to acknowledge that our EUR 350 million EBITDA run-rate improvement actions are progressing well, and we achieved a EUR 101 million enhancement in 2024. In addition, we have initiated decisive short-term cost-saving measures of EUR 50 million to be delivered during 2025 and continue to work on our long-term plans to improve our competitiveness. Further, we have cut our planned capital expenditure to EUR 160 million for the year 2025.
Despite weak earnings in a challenging market environment, our financial position remained strong. Therefore, the Board of Directors is proposing a dividend of EUR 0.26 per share, to be paid in two installments. I am pleased that we can reward our shareholders for their commitment to Outokumpu.
We have actively managed our working capital, net debt and liquidity, and we will continue to do so. At year-end, our inventory levels were higher than usual as we prepared for the union strikes in Finland, which started at the end of January. These strikes are very unfortunate for the Finnish industry, including Outokumpu.
In the fourth quarter of 2024, Outokumpu’s adjusted EBITDA decreased to EUR -3 million and deliveries fell by 8% compared to the previous quarter.
In business area Europe, adjusted EBITDA decreased to EUR -32 million, and stainless steel deliveries fell by 9% compared to the previous quarter. This is a disappointing result for our biggest business area, and the adverse development was mainly driven by weaker-than-expected market conditions. Poor demand and increased imports have kept prices low. The European Union must be fast to react and protect its critical steel industry from unfair competition – current trade measures are not enough. For more favorable markets, interest rates should continue to decrease, as well as consumer confidence and industrial activity to pick up.
In business area Americas, adjusted EBITDA was EUR 9 million, and stainless steel deliveries decreased by 7% compared to the previous quarter. The manufacturing sector continues to be subdued, and a stimulus is expected to come from growth supported by increased domestic production and infrastructure investments.
Business area Ferrochrome’s adjusted EBITDA improved to EUR 33 million. Demand for our low emission, European ferrochrome has remained favorable, even in a challenging market environment. At the beginning of this year, we were able to increase our mineral reserves at the Kemi mine by 95% based on new underground drilling, proving that the ground in the mine area is rich in chrome ore. It is especially gratifying that we have secured the ore availability until the 2050s, and no further major investments are needed.
I am proud that we maintained our world-class safety performance of 1.5 TRIFR in 2024. Outokumpu is also making good progress with its smart decarbonization strategy. Our target is to decrease emission intensity by 42% by 2030 from the 2016 baseline. By the end of last year we had reached a 32% reduction and maintained a high recycled material content of 95%. We have advanced with our actions to lower direct emissions in ferrochrome production by replacing fossil coke with biocoke and decided to invest EUR 40 million in a biocarbon plant in Germany.
Today, we announced some strategic decisions. In this market environment, Outokumpu is currently not proceeding with a cold rolling investment in the U.S. However, our long-term view on the U.S. market remains positive. In addition, we are no longer planning to move forward with the Small Modular Reactor (SMR) development in Tornio, Finland. Energy is not Outokumpu’s core business, but we are looking for a partner that is interested in investing in energy production next to our site.
I am excited to have Matthieu Jehl joining Outokumpu’s Leadership Team as the President of business line Stainless Europe. He is a strong leader and has extensive experience in related industries.
In the short term, we are implementing measures to handle this low point of the demand cycle and to secure the financial strength of Outokumpu. At the same time, we are working on the next strategy phase which we will publish in our next Capital Markets Day in June 2025. I want to thank our employees for their efforts and commitment, our customers for their business and trust, our suppliers for their co-operation, and our shareholders for their continuous support.