Outokumpu Oyj - Company Announcement

Outokumpu to invest over EUR 100 million in Degerfors, Sweden

STOCK EXCHANGE RELEASE
June 9, 2010 at 9.05 EET


Outokumpu invests EUR 104 million to increase capability and capacity of
stainless steel quarto plate production in Degerfors. The investment is in line
with Outokumpu's strategy to increase the proportion of special grades. It also
strengthens the Group's position as a world-leading quarto plate producer.

Outokumpu has a global market share of some 20% in quarto plate, individually
rolled wide and thick plate, used for example in chemical tankers, energy
industry and desalination plants. With this investment Outokumpu can grow
further and offer a wider product range with various dimensions and grades.
Bo Annvik, EVP - Specialty Stainless: "We are very positive about the future
market for special grade quarto plate, tailored to customer demands. This
investment enables us to produce even higher quality stainless steel.
Additionally, the work environment will be improved and the environmental impact
further reduced".

The capability is increased through new equipment like heat treatment batch
furnaces, including cooling, and a leveler. The investment will increase annual
production capacity in Degerfors by 30% to 150 000 tons. The entire production
flow will be streamlined and a new walking hearth furnace and cooling bed will
be installed.

The majority of the new capacity is scheduled to be available in 2014. The
investment will be spread out over five years with the majority of cash
out-flows in 2012 and 2013. The return on the investment is well above the Group
target of 13%.

The quarto plate investment project was originally announced in October 2007 but
was postponed in December 2008 due to the financial crisis and unsecure market
conditions.

In the future, Outokumpu's product mix in quarto plate will include more
tailor-made products, added value service offerings and special grades, in
particular Outokumpu's proprietary low nickel duplex grades. The corrosion
resistant high strength duplex grades offer considerable material weight savings
to customers. An important part of Outokumpu's strategy is to increase sales to
end-users and projects, where segments like desalination, chemical tankers, oil& gas and pulp & paper offer a lot of opportunities. Outokumpu's network of
plate service centres, which now includes the recently inaugurated facility in
Kunshan, China, will play an important role in developing this business.

For more information, please contact:

Bo Annvik, EVP - Specialty Stainless, tel +46 226 826 01, +46 70 820 8087
Päivi Lindqvist, SVP - Communications & IR, tel. +358 9 421 2432, +358
40 708 5351


Outokumpu is a global leader in stainless steel with the vision to be the
undisputed number one. Customers in a wide range of industries use our stainless
steel and services worldwide. Being fully recyclable, maintenance-free, as well
as very strong and durable material, stainless steel is one of the key building
blocks for sustainable future. Outokumpu employs some 7 500 people in more than
30 countries. The Group's head office is located in Espoo, Finland. Outokumpu is
listed on the NASDAQ OMX Helsinki.
www.outokumpu.com <http://www.outokumpu.com/>


[HUG#1422519]

Attachments:

ENG Degerfors investment June 2010.pdf