HELSINKI, Feb 13 (Reuters) - Finland's Outokumpu

on Thursday said it had decided to drop its plan to

invest in additional production capacity in the United States

due to the "unpredictable" market environment.

U.S. President Donald Trump has announced tariffs on Canada,

Mexico and China as well as on products such as steel, but

Outokumpu said it was not immediately clear how it would be

impacted by these. The Finnish company said this week that it is

the second-largest producer of stainless steel in the U.S., with

production facilities in Calvert, Alabama.

"Given the current unpredictable market environment with

significantly increased imports in the recent years...our

feasibility study did not support making a capital-intensive

investment in additional (U.S.) cold rolling capacity for the

time being," Outokumpu Chief Executive Kati ter Horst said in a

statement.

Import penetration, mainly from Asia, into the North

American market had nearly doubled during the past five years,

she said.

"Now, as the newly introduced tariffs may decrease import

pressure, we will follow the situation closely," she said.

As well as its integrated stainless steel operations,

including melt shop and hot- and cold-rolling in Alabama,

Outokumpu also has cold rolling operations in San Luis Potosi,

Mexico.

Analysts have flagged Outokumpu as exposed to tariffs

against Mexican and Canadian steel.