Outokumpu to set up two new units in state

NEW DELHI: Stainless steelmaker Outokumpu India, part of Finland-based Outokumpu, plans to set up a plate service centre and a rebar processing facility next to its coil service centre, which is being built in the Ambarnath region in Maharashtra. The entire project would entail an investment of close to Rs 300 crore. Besides, the company is also looking at setting up a steel tube manufacturing plant, which could also be through a joint venture.

���The growing demand for finished and semi-finished stainless steel products across various sectors have prompted us to add a rebar processing facility and a plate service centre to our coil service centre,��� said a senior company official. These centres would provide customised steel products to the industrial sector. Last year, the company sold 11,000 tonnes of steel in the domestic market and this year, it is targeting sales of 30,000 tonnes of steel.

Though the coil service centre was slated to become operational by 2009, obstacles in acquiring land have delayed the project by a year. However, the company has recently identified a 20-acre piece of land, owned by the Maharashtra State Industrial Development Corporation, and would complete the acquisition process within the next two months.

The company has also put its plan for setting up a 2.5-lakh tonne cold rolling steel plant on hold for the time being.
���We did a feasibility study on building a CR mill and decided not to proceed with investments now as Indian prices are not very attractive. The country���s unorganised stainless steel sector is huge and offer products at reasonable prices,��� said a company official.

Currently, Outokumpu operates in 30 countries and serve a wide range of industries ranging from the process industry and industrial machinery to building, construction and electrical industry, transportation, electronics and information technology sector.