The Outokumpu Group will invest approximately EUR 6 million in its production plant in Jakobstad, Finland. The investment means that the two existing  tube welding lines FV 1 and 2 will be integrated and completed with laser welding, pickling and packing. The investment is a new concept of producing welded stainless tubes in dimensions 125-500 millimeter from strip to a finished product in a continous production process. 

The target with this investment is to reduce production costs, increase the capacity, introduce laserwelding technology into FV 2 and to introduce the inline concept into both lines. The capital expenditure will be spread over a two-year period with the majority spent between mid 2005 and mid 2006. This investment will more than double the capacity of the lines to 40 000 tonnes. The new capacity is scheduled to be in place by the end of 2006. The investment is part of the product swap programme between the various tubular production units that the company is currently undertaking.

The production unit in Jakobstad is part of Outokumpu Stainless Tubular Products and concentrates on process pipes and HF-welded tubes. The unit has long experience of laser welding and new technology has been implementated successfully  also earlier. The unit in Jakobstad employs some 180 people and the investment will result in approximately 10 new job opportunities within a few years.
Outokumpu Stainless Tubular Products is a business unit within the Outokumpu Group and is one of the leading producers of stainless steel. Outokumpu Stainless Tubular Products is on the other hand one of the biggest global producers of stainless welded tubes and pipes with a broad product range of both standard and special grades. The business unit has operations in Finland, Sweden, Estonia, Belgium, France, Canada and the US and employs some 1 400 people. Sales in 2004 was approx. EUR 365 million.

A press conference will be given in Jakobstad at the Outokumpu Stainless Tubular Products office, Nordanvägen 11 on Tuesday 26 April at 1.30 PM. For details please contact Bengt Råbacka.

For further information, please contact:
Bengt Blomberg, Senior VP – Outokumpu Stainless Tubular Products, phone +46 226 82602, mobile +46 70 621 7752

Bengt Råbacka, General Manager, OSTP Pietarsaari, phonel. +358 6 786 5111,
mobile +358 6 40 550 3343