Outokumpu Stainless to close its tubular operations at Stelco Hardy in Wales

Outokumpu Stainless subsidiary Outokumpu Stainless Tubular Products has today announced its intention to close its tubular operations in Wales in Britain latest by the end of Q1 /2005. This closure plan has been made against a background of ongoing loss making at Stelco Hardy and adverse market conditions in their product range.

Stelco Hardy has been producing stainless steel welded tubes mainly for decoration and automotive industry. The proposed closure will result in approximately 40 job losses at the site in Wales. These changes are the subject of consultation, which will immediately commence with the Stelco Hardy workforce and the appropriate trade unions.

The Stelco Hardy annual delivery volumes have been around 4 000 tonnes in both austenitic and ferritic stainless steel, which represents only 5 percent of Outokumpu Stainless Tubular Products total production. Stelco Hardy's annual sales are approximately EUR 12 million. Outokumpu Stainless Tubular Products will ensure that inconvenience to customers will be minimized and strive to find alternative supply units.

Outokumpu Stainless Tubular Products total sales are EUR 320 million annually and the business unit employs some 1 350 people. The company has operations in Sweden, Finland, Canada, Belgium, Estonia and France.

For further information, please contact:

Olof Faxander, President Special Products Division,
Phone: +358 9 421 5567, Mobile: +358 40 564 1127
e-mail: olof.faxander@outokumpu.com

Bengt Blomberg, President Outokumpu Stainless Tubular Products,
Phone: +46 226 826 02, mobile +46 70 621 77 52
e-mail: bengt.blomberg@outokumpu.com