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Outokumpu to Build Stainless Service Center, Cold Mill in India
08/06/2007 - Outokumpu's Board of Directors approves plans to build a greenfield stainless steel service center in the western part of India, and is evaluating plans to build a new greenfield stainless steel cold rolling mill there as well.
Outokumpu's Board of Directors has approved plans to build a greenfield stainless steel service center in the western part of India at an investment cost of some EUR 30 million. The western region is currently the country’s major stainless steel consuming area, and the consumption there is forecast to remain dominant.
Scheduled to be in operation in the first half of 2009, Outokumpu's new service center will have an annual capacity to stock and process some 50,000 tonnes of stainless steel coil. It will have cut-to-length, slitting, polishing, and brushing lines to serve among others the metals goods, equipment fabrication, and process industries, as well as welded pipe and tube manufacturers. The cold rolled stainless steel coil supply will come mainly from Outokumpu's integrated stainless steel mill in Tornio, Finland.
To further strengthen the Group's market position in India, Outokumpu is also planning to build a new greenfield stainless steel cold rolling mill in India. The planned mill would have an annual capacity of some 250,000 tonnes of cold-rolled stainless steel coil, with hot rolled feedstock coming from Outokumpu's integrated stainless steel mill in Tornio, Finland.
The Group has already completed an initial study, and a more detailed feasibility study on the project has now started that is expected to be finalized in the first quarter of 2008. The study will evaluate the possibility of utilizing some of the unused equipment from the Sheffield cold rolling mill that was closed in 2006.
“The new Service Center and the planned cold rolling mill in India will increase Outokumpu's geographical coverage and support our aim to increase sales directly to end-users,” said Juha Rantanen, CEO of Outokumpu. “During the course of 2007 further options will be evaluated to widen Outokumpu's geographical presence.”
