Outokumpu Divests Majority of Long Products Segment to Marcegaglia
According to a company press release, Outokumpu will now focus on flat stainless steel products. The divestment, which is expected to be completed by the end of this year, totals EU228 million.
“This divestment marks the accomplishment of the turnaround program for the Long Products business in the past two years,” said Heikki Malinen, Outokumpu’s president and chief executive. “With Marcegaglia, we have found a responsible and committed owner to develop Long Products business even further. The sale is a natural step for Outokumpu in line with our strategy to focus on our core business, stainless steel flat products.”
Outokumpu’s Long Products sales accounted for approximately 8% of the group’s sales in 2021. The transaction includes the long products melting, rod and bar operations in Sheffield, U.K.; bar operations in Richburg, S.C., USA; and wire rod mill in Fagersta, Sweden.
The transaction does not include Outokumpu Long Products AB operations in Degerfors and Storfors, Sweden, which will continue their operations for now as part of the Outokumpu Group.