Outokumpu has agreed to sell the majority of its stainless-steel long products business to the Marcegaglia Group, an Italian entity that owns some 30 steel plants.
A press release said that Outokumpu has signed an agreement to divest the majority of its long products business operations to Marcegaglia Steel Group, a leading industrial group in the steel processing sector. Outokumpu will now focus on its core business of flat stainless-steel products.
The long products operations to be sold represent about 8% of the Outokumpu Group’s sales in 2021. They include: melting, rod and bar operations in Sheffield, U.K.; bar operations in Richburg, U.S.; and a wire rod mill in Fagersta, Sweden. The transaction does not include Outokumpu Long Products AB operations in Degerfors and Storfors, Sweden. Approximately 650 employees in Sheffield, Richburg and Fagersta will transfer to the buyer as a part of the transaction.
“This divestment marks the accomplishment of the turnaround program for the Long Products business in the past two years,” said Outokumpu President and CEO Heikki Malinen. “The sale is a natural step for Outokumpu in line with our strategy to focus on our core business, stainless-steel flat products.”
Outokumpu expects to complete the divestment by the end of this year. Outokumpu Long Products AB’s units in Degerfors and Storfors in Sweden continue their operations for now as part of the Outokumpu Group, and different options are to be evaluated for the future of the units.