Outokumpu Copper Products Oy, Finland, and Hitachi Cable, Ltd., Japan, have today signed an agreement to establish a joint venture company in Thailand to be called Outokumpu Hitachi Copper Tube (Thailand) Ltd. The new company will manufacture copper tubes for use in air conditioning, refrigeration and heat transfer industries. The new joint venture company will be established by November 1999 and it will acquire the fixed assets of Bangkok Metal Industry Co.,Ltd., which is an affiliate of Hitachi Cable, Ltd. The execution of the final transaction is subject to customary regulatory approvals.

The investment, including working capital, will be approximately US$ 33 million. Outokumpu Copper Products Oy will own 64% and Hitachi Cable 36% of the joint venture, which is planned to reach the production of 11.000 tones per year of copper tubes in a few years time. Total personnel will reach 190. The new company's main markets are Thailand and other South East Asian countries, where copper tube consumption is expected to grow quite strongly in the future years. Targeted customers include local ACR-equipment manufacturers and Japanese joint ventures in South East Asia.

This new joint venture will benefit from Outokumpu Copper Products and Hitachi Cables technology and know-how support. The company will utilize Cast & Roll technology invented by Outokumpu and inner grooving technology invented by Hitachi Cable. Additionally, the joint venture will also benefit from the international sales networks of its shareholders.

Outokumpu Hitachi Copper Tube (Thailand) Ltd. is the first joint venture between European and Japanese copper products companies. Both shareholders are convinced that the new company will provide customers with top quality products, solutions and service.

Outokumpu Copper Products Oy, which is part of the Outokumpu Group, operates globally in all main market areas for fabricated copper products. It has a particularly strong competitive position in its principal markets of the United States and Europe. In recent years, production capacity has been built on the Asian markets as well. Significant users of copper products are industries such as the building and construction, automotive, electrical and electronics as well as telecommunications industries. The manufacturing plants are located in the USA, Finland, Sweden, the Netherlands, Spain, China, Malaysia and UK Outokumpu Copper Products*s net sales in 1998 were EUR 1.2 billion (US$ 1,3 billion) and the amount of employees 5,500. In Asia the company is already producing said ACR-tubes with the same proprietary Cast & Roll technology in its plant in Zhongshan, China, while production of welded ACR-tubes has been started in its plant in Pasir Gudang, Malaysia.

Hitachi Cable, Ltd. is one of the leading Japanese manufacturers of fabricated copper products on top of its cable operations. Net sales in 1998 were 382 billion yen (US$ 3,2 billion) and the amount of employees 13,300.