Finland-based stainless steel producer Outokumpu has announced that it has divested its pipe plant in Wildwood, Florida, US to Ta Chen International Inc., a master distributor in the US and part of Taiwan-based company Ta Chen Stainless Pipe, Ltd. Outokumpu’s other operations in the US remain unchanged.
Outokumpu stated that the divestment of the plant will allow it to focus on its stainless steel production in the US at its plants in Calvert, Alabama and Richburg, South Carolina.
The cash consideration of the transaction is approximately €25 million, depending on the amount of the net working capital at the closing. The transaction reduces Outokumpu’s net debt by approximately the same amount.