Finland's Outokumpu to invest Rs 1,000 cr in India

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New Delhi, June 27:: Finnish stainless steel major Outokumpu plans to invest Rs 1,000 crore for setting up a cold rolling (CR) mill in Western India with a capacity of 2.5 lakh tons.

"We have undertaken a feasibility study for the proposed mill that would roll hot-rolled coil into sheets for consumption in various industries. After the feasibilty report is ready, the board will take a decision," Head of Outokumpu India, Yatinder Pal Singh Suri said.

He said the company will import HR coils from its plants in Finland and Swedan to meet the requirement of the proposed CR mill that is likely to come up in Maharashtra or Gujarat.

Suri said the sheets manufactured from the CR mill would be of 0.5 and 0.4 mm thickness and supplied to catering, appliances, architecture, fabrication and white goods sectors, among others.

Besides, Outokumpu is also setting up a Rs 200 crore business centre in Mumbai, which would have an annual capacity of 50,000 tons of stainless steel. The centre is likely to commission operations by 2009.

A business centre primarily offers customised steel products to end users in keeping with their requirements of size and shape.

Suri said Outokumpu is in talks with Indian Railways for supplying stainless steel for wagons and coaches. The company has already supplied stainless steel to Bombardier India for construction of 348 metro coaches here.

The Indian Railways requires about 1.4 lakh tons of stainless steel for construction of 25,000 wagons, as announced in this year's Union Budget.