'The total cost of this facility amounts to 15 million euros ($21.1 million) and it is expected to be in full commercial production by the end of the second quarter of 2011,' said OASP managing director Christer Asp.
'With this investment, OASP will be the only company of its kind within the Middle East market,' he remarked.
OASP was established in October 2008 in Riyadh as a joint venture between Sweden-based business unit Outokumpu Stainless Tubular Products AB (OSTP), part of Finnish giant Outokumpu, and Saudi Arabia's Al Hejailan Group which acquired Armetal several years ago.
Another expansion taking place at OASP is the construction of a line for the manufacture of pipes of diameters of 2.5 inches to 8 inches.
OASP currently operates a line to produce pipes of half-inch to two-inch diameter with output capacity at 2,400 tonnes annually.
As much as 90 per cent of the products that OASP distributes including those manufactured by its partner OSTP at its various international sites is consumed within Saudi Arabia.
'Through its constituent Armetal, OASP has a long tradition and knowledge of the stainless steel industry in the GCC region,' said Asp.
'The main goal of OASP is to focus on developing the process pipe business in the Middle East and North Africa region, and to become the preferred supplier for steel stockists, traders and projects operating within this market,' said its commercial manager Marwan Tawha.
'Although a relatively new enterprise, OASP's strength is based on the unique combination of Armetal's strong local connections and knowledge of the market and OSTP's skills and know-how in the pipes process industry.