Finland-based stainless steelmaker has announced updates on its planned divestment of Italian stainless steel plant Terni Acciai Speciali (AST), stating that additional safeguards have been imposed by the European Commission (EC) aiming to ensure that AST's financial results and ability to continue doing business will not be adversely impacted by the ongoing divestment process.
According to the new safeguards, the AST management will remain unchanged and will continue to work with the monitoring trustee appointed by the EC to oversee the divestment process. AST will continue to use the same European service center network as before. AST will also continue to supply Tubificio di Terni with its products under pre-existing arrangements.
Furthermore, Outokumpu has already enabled AST to utilize the Willich service center to market its unique products in Germany and, at the suggestion of the EC, AST will also supply standard products to this service center, so that AST's reach in Europe will continue to expand. In addition, AST continues to supply significant volumes to Outokumpu's overseas facilities.
As SteelOrbis previously reported, Outokumpu stated that the bids received so far for the Terni steel plant have not been satisfactory. The company extended the timeline for the divestment process.
Outokumpu is divesting its Terni plant as a remedy for its acquisition of Inoxum, German ThyssenKrupp's stainless steel branch.