Outokumpu steps up ferritic and brigth annealed stainless steel capability - Over EUR 300 million to be invested in Tornio

STOCK EXCHANGE RELEASE
January 31, 2008 at 12.45 p.m.


In line with Outokumpu's new strategy phase, announced in September
2007, to increase the share of direct end-user and project sales and
to expand the value-added special stainless steel products capacity,
the Board of Directors has today approved a major investment to start
the production of high-quality ultra-clean ferritic stainless steel
grades, as well as bright annealed austenitic and ferritic stainless
steel products in Tornio, Finland. The total investment is some EUR
370 million, including also a service center in Southern Germany. The
investment project in Tornio also comprises some upgrades in the melt
shop and finishing lines. The return on the investment is well above
the Group target of 13%.

VOD (Vacuum Oxygen Decarburization) equipment will be installed in
the Tornio melt shop to enable the production of high-quality
ultra-clean ferritic stainless steel with very low carbon, nitrogen
and hydrogen content, for the most demanding end-use applications,
within the current capacity frame. High purity ferritics are mainly
used e.g. in automotive and chemical industries, as well as in
building and construction.

A new bright annealing and cold rolling line will be installed at
Tornio Works. The new line will enable Tornio to start the production
of both austenitic and ferritic bright annealed products, with an
annual capacity of some 100 000 tons. The bright annealed finish
stands for a mirror-like shiny stainless steel surface, and the
products are typically used in applications like domestic appliances
and food processing.

The investment, together with the on-going replacement of the no. 2
annealing and pickling line, will increase the total finished
products installed capacity of Tornio Works from the current 1.2
million tons to some 1.3 million tons by the end of 2010. The
production capacity of ferritic grades will be some 230 000 tons
annually. After these investment Outokumpu has the capability of
producing all major stainless steel grades.

To serve stainless steel customers in Southern Germany and especially
the bright annealed austenitic and ferritic stainless steel customers
around Stuttgart Outokumpu has decided to set up a new service center
near Stuttgart. The service center will provide just-on-time
deliveries with standard grades and bright annealed stainless steel
that is processed to the needs required by the customer. The annual
processing capacity of the service center will be some 60 000 tons
and it will be in place by the end of 2010.

For further information, please contact:

Antti Pihko, Senior Vice President - Tornio Works, tel. +358 40 848
2948
Eero Mustala, Vice President - Project Communications, tel. +358 40
504 5146

Outokumpu Oyj
Corporate Management


Ingela Ulfves
VP - Investor Relations and Financial Communications
Tel. +358 40 515 1531