Outokumpu of Finland, a global leader in stainless steel, is to set up a high-tech service centre near Mumbai - billed as the first of its kind in India.

Maharashtra Chief Minister Vilasrao Deshmukh, who signed an MOU with Outokumpu Wednesday, said Outokumpu - the world's second largest stainless steel maker - will set up a modern coil and plate service centre near Mumbai.

With an investment of 45 million Euros (Rs.2.7 billion), the service centre will have a combined annual processing capacity exceeding 50,000 tonnes per annum and offer customized products on 'just in time basis with total traceability.'

'The facility will offer high quality customized products to improve the competitiveness of India end-users and help them create further employment,' said an official accompanying Deshmukh.

The service centre will be equipped with modern equipment and machines, including slitting lines for tube segment, cut-to-length lines for automotive and white goods segments, and polishing lines for architectural applications.

Besides, these the centre will have laser cutting machines, plasma cutting machines and water-jet cutting machines.

The centre, which will employ some 130 people, is expected to be operational in early 2010.

Outokumpu, which employs 8,200 people in 30 countries, last week announced it was closing down its stainless steel plant in Sheffield, Britain, because of oversupply.

Outokumpu became the world's second-largest stainless steel maker in 2000 when it merged steel operations with Britain's Avesta Sheffield to form AvestaPolarit. It has declared a goal of becoming the world's No.1, and has gradually divested non-core production.