Outokumpu to divest its share in Chinese joint venture for €370 million

Monday, 19 October 2015 15:55:40 (GMT+3)   |   Istanbul
       

Finland-based stainless steel producer Outokumpu has announced that it will divest its 55 percent stake in the joint venture Shanghai Krupp Stainless Co., Ltd (SKS) for about €370 million to China-based Lujiazui International Trust Co., Ltd. SKS is a Shanghai-based joint venture between Outokumpu and Baosteel, who have held 60 and 40 percent respectively. SKS has a cold rolling capacity of 290,000 mt per year and the mill employs over 450 people.
 
As a result of the transaction, Outokumpu’s net debt is expected to decrease by approximately €430 million. Outokumpu expects to record a non-recurring capital gain of about €330 million in its fourth quarter results. The closing of the transaction is expected by the end of November this year and subject to customary regulatory approvals in China. Following the closing of the transaction, SKS will no longer be considered a subsidiary and Outokumpu will cease to consolidate SKS into its financial statements.