PRESS RELEASE
February 12, 2008 at 10.00 a.m.
Outokumpu, one of the global leaders in stainless steel and Armetal, a Saudi Arabian manufacturer of architectural stainless steel, have agreed to form a 51/49 stainless steel tubular Joint Venture. The joint venture company will be set up in Riyadh and will be named Outokumpu Armetal Stainless Pipe Co., Ltd.
The Middle East is one of the fastest growing markets in the world with high potential in investments in e.g. the oil and gas, as well as desalination industries that require a multitude of stainless steel products. Outokumpu Armetal Stainless Pipe will be a significant player in the stainless tubular products market in the Middle East with high quality products and services.
Outokumpu Armetal Stainless Pipe will expand the existing Armetal pipe product range by installing a state of the art mill, to produce stainless pipes up to 6". The company's annual capacity will be some 10 000 tons in full operation. With its product range, it will be the only company of its kind in the fast growing market in the Middle East, and will further solidify its position with a planned expansion of its product range up to 24".
The goal of Outokumpu Armetal Stainless Co., Ltd is to focus on developing the process pipe business, and to become the preferred supplier in the region. In the development process, the company will utilize the strength of being a part of both a strong local company Armetal, with knowledge of the local market, combined with the know-how and product range available from Outokumpu Stainless Tubular Products (OSTP).
Outokumpu is one of the world's leading producers of a broad selection of stainless steel products, including among others welded stainless tubular products for the process industry, steel stockholders and manufacturers.
Armetal, a company of Al-Hejailan Group, was founded in 1985 as the first manufacturer of architectural stainless steel in the Middle East, and ever since has enjoyed the reputation of being the best in this field. In 2003, Armetal started to produce architectural stainless steel pipes, process pipes, satin and mirror sheets, all from its existing premises in the Second Industrial Zone in Riyadh, Saudi Arabia.
For further information, please contact:
Lasse Johansson, SVP - Outokumpu Stainless Tubular Products
Tel. +46 226 826 02, mobile +46 70 618 2602
Emad Al-Hejailan, Chairman - Al Hejailan Group
Tel. +966 1 476 1414, mobile +966 50 520 5678
