Finland-base Outokumpu, one of the global leaders in stainless steel, and Saudi manufacturer Armetal are to form a 51:49 stainless steel tubular joint venture named Outokumpu Armetal Stainless Pipe Co Ltd.

The new company, to be set up in Riyadh, will expand the existing Armetal pipe product range by installing a state-of-the-art mill to produce stainless pipes up to 6.”
The company’s annual capacity will be some 10,000 tonnes in full operation. With its product range, it will be the only company of its kind in the fast growing market in the Middle East, and will further solidify its position with a planned expansion of its product range up to 24”.
Armetal, a company of Al-Hejailan Group, was founded in 1985 as the first manufacturer of architectural stainless steel in the Middle East, and ever since has enjoyed the reputation of being one of the best in this field. In 2003, Armetal started to produce architectural stainless steel pipes, process pipes, satin and mirror sheets, all from its existing premises in the Second Industrial Zone in Riyadh, Saudi Arabia.
Armetal general manager Ali M Abu Salma said current annual production was 8,000 tonnes, which could be increased to 12,000 tonnes. “With the new product in the jv the annual production will be doubled,” he said.
The company started its new production line for welded pipes from half inch to two inches suitable for the gas and oil industry and in the next stage it will produce 8” and up, the official said.
Armetal exports go to some of the GCC states, Lebanon, Syria, Jordan and Egypt.
“The goal of Outokumpu Armetal Stainless Co Ltd is to focus on developing the process pipe business, and to become the preferred supplier in the region,” the Finnish company said in a release.
“In the development process, the company will utilise the strength of being a part of both a strong local company Armetal, with knowledge of the local market, combined with the know-how and product range available from Outokumpu Stainless Tubular Products (OSTP),” it said.
“The Middle East is one of the fastest growing markets in the world with high potential in investments in oil and gas for example as well as desalination industries that require a multitude of stainless steel products. Outokumpu Armetal Stainless Pipe will be a significant player in the stainless tubular products market in the Middle East with high quality products and services.”
Outokumpu is one of the world’s leading producers of a broad selection of stainless steel products, including among others welded stainless tubular products for the process industry, steel stockholders and manufacturers.