Finland-based metals and technology group Outokumpu has announced that it will invest €550 million ($760 million) over the coming three years in stainless steel special grades capacity at its Avesta Works in Sweden in line with the new phase in its development strategy.
The investment is expected to start in 2010 and to boost the stainless steel special grades capacity at its Avesta Works from the current 250,000 mt to 650,000 mt. The added capacity will mainly involve the duplex stainless steel grade, which is used principally in piping and civil engineering and which is stronger than standard stainless steel.
Outokumpu has also disclosed that the return on capital generated from the expansion is foreseen to be higher than the group's target of 13 percent, while 100 new job opportunities will be created.
Commenting on the investment, Outokumpu, which has a global share of about 50 percent in duplex stainless steel, stated that the increased output in Sweden will help the company become the world's "number one" in stainless steel production.