Finland-based stainless steel producer Outokumpu has announced that it will establish a 51:49 stainless steel tubular joint venture in Riyadh, Saudi Arabia called Outokumpu Armetal Stainless Pipe Co., Ltd. with Armetal, a Saudi Arabian manufacturer of architectural stainless steel owned by Al-Hejailan Group.
In a statement on the issue, Outokumpu said that Outokumpu Armetal Stainless Pipe will be a significant player in the stainless tubular products market in the Middle East, which is one of the fastest growing markets in the world with high potential in investments in e.g. the oil and gas industry, as well as in the desalination industry, which both require a multitude of stainless steel products.
Outokumpu Armetal Stainless Pipe will expand the existing Armetal pipe product range by installing a state-of-the-art mill for the production of stainless pipes of up to six inches in diameter. The annual production capacity will be 10,000 mt once the company becomes fully operational. With its product range, it will be the only company of its kind in the Middle East and will further strengthen its position with a planned expansion of its product range up to 24 inches in diameter. The JV company will both benefit from the strength of the local company Armetal, as well as from the know-how and product range available from Outokumpu Stainless Tubular Products (OSTP).