10/11/2004 (Agence Europe) - The European Investment Bank (EIB) has decided to grant a loan of EUR 85 million towards the EUR 1 bn expansion project at Outokumpu's Tornio stainless steel mill in Finland. The investment project that will be completed in mid 2005 will see the Tornio capacities more than double to 1.65 million tonnes in melting and hot rolling and 1.2 million tonnes in cold rolling mill capacity annually. The Tornio integrated stainless steel mill is located at the northern end of Gulf of Botnia in Northern Finland. The Tornio expansion project forms part of the company's wider optimisation programme aiming to rationalise stainless steel production at its various locations in Finland, Sweden and the UK. Tornio, at the Finnish-Swedish border in Lapland, is located in an Objective 1 region for EU Structural Funds assistance. The Tornio mill is of strategic importance both for Tornio and the nearby town of Kemi, as Outokumpu currently employs about 2,300 people.