Outokumpu Oyj - Company Announcement

Outokumpu invests EUR 550 million in stainless steel special grades in Avesta Sweden

Stock Exchange Release
September 17, 2007 at 9.00 a.m.


In connection with the move into a new phase in its strategy
development towards the undisputed number one in stainless, Outokumpu
today announced an EUR 550 million investment, over the next three
years, in stainless steel special grades capacity in its Avesta Works
in Sweden. The investment will increase the finished products
capacity of Avesta from the current 250 000 tons to some 650 000 tons
with mainly duplex grades, starting in 2010. The return on capital
employed from the expansion is estimated to be clearly higher than
the Group's 13% target. Some 100 new jobs will be created in Avesta.

Demand for duplex grades grows faster than that of standard stainless
grades. Annual growth is estimated to be over 20%. Duplex stainless
steel is characterized with good corrosion resistance and high
strength, as well as low nickel content. The high strength of the
material enables the use of thinner gages in a variety of
applications such as tanks, pressure vessels, piping, transportation,
civil engineering and structures, thus bringing considerable savings
in material costs. Outokumpu is a clear market leader in duplex grade
stainless deliveries with a global market share of some 50%. Avesta
Works has a long and successful track record in the demanding
production process of duplex.

Outokumpu has developed and patented the Lean Duplex grade (LDX
2101®) which contains only 1.5% of nickel making its price less
dependent of the volatility of the nickel price. The corrosion
resistance of LDX is similar to that of the standard austenitic 304
grade, but its strength is about twice as high. Outokumpu's Lean
Duplex was introduced in 2002 and has met with great success in
demanding applications. To further facilitate the market penetration
of Lean Duplex, Outokumpu has earlier this year awarded manufacturing
licenses to two other stainless steel producers in Europe and Asia.

The investment in Avesta includes a new AOD converter, increase of
the melt size from 100 to 125 tons and a new slab grinding line,
increasing the melt shop capacity to some 750 000 tons from the
current 500 000 tons. The investment further includes a new
state-of-the-art 400 000 ton 2 meter wide annealing and pickling line
with integrated edge trimming. The Avesta hot rolling is well suited
to roll duplex grades and has the capacity to treat the expanded melt
shop capacity. The finished product is annealed and pickled white hot
strip and will be sold mainly to direct end-user and project
customers.

For further information, please contact:

Bo Annvik, Executive Vice President - Specialty Businesses,
tel. +46 708 208 087, bo.annvik@outokumpu.com

Ulf Öhnfeldt, Site Manager - Avesta Works,
tel. +46 70 6671 810, ulf.ohnfeldt@outokumpu.com

Eero Mustala, Senior Vice President - Corporate Communications,
tel. +358 9 421 2435, eero.mustala@outokumpu.com

OUTOKUMPU OYJ
Corporate Management
Ingela Ulfves
Vice President - Investor Relations
tel. + 358 9 421 2438, mobile +358 40 515 1531, fax +358 9 421 2125
e-mail: ingela.ulfves@outokumpu.com
www.outokumpu.com

Priedai:

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