November 21, 2008

Outokumpu to set up a Greenfield service centre in India

ET reported that Finnish stainless steel major Outokumpu is planning to set up a Greenfield service centre in India and has zeroed in on a couple of locations on the west coast of the country.

Mr Juha Rantanen CEO of Outokumpu "The service center is scheduled to be in operation in the first half of 2009 at an investment cost of EUR 30 million. The new service center, with an annual capacity to stock and process some 50 000 tonnes of stainless steel coil, will significantly complement the services that Outokumpu's Indian sales office has been providing to Indian customers. We already have 2 sales offices in India and now plan to set up a service centre here to cater to our customers. We are looking at sites close to ports such as JNPT near Mumbai and Taloja."

Mr Rantanen said that "The service center will have cut to length, slitting, polishing and brushing lines to serve among others the metals goods, equipment fabrication, 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 at Tornio in Finland."

He said that "We consider India as a high potential market and have committed an investment of EUR 30 million in India over a 2 year period. Mumbai, Pune and the western region comprise nearly 50% of the stainless steel market in India We still need to conduct technical and financial feasibility studies."

Outokumpu already has 2 sales offices in India one at Delhi and the other at Mumbai. Its products are in high demand in segments such as architecture, process equipment manufacturing and fabrication firms.