Finland-based stainless steel producer Outokumpu has announced that it has signed an agreement with Swedish high-technology engineering and steelmaking group Sandvik to purchase full ownership of its Fagersta Stainless wire rod mill in Sweden. Fagersta Stainless is currently a 50/50 joint venture owned by Outokumpu and Sandvik Materials Technology, a part of Sandvik.
According to Outokumpu’s statement, Fagersta Stainless is a leader in special stainless steel wire rod serving customers globally. Fagersta’s product offering complements well Outokumpu’s ASR wire rod mill in Sheffield, UK, and Outokumpu plans to develop both units further to ensure continued offering of leading products and service to its wire rod customers globally.
The cash consideration of the transaction is €18 million. The transaction will be executed in two phases, so that Outokumpu’s ownership will increase to 90 percent at the end of June this year and to 100 percent at the end of 2019. The completion of the transaction is subject to customary closing conditions.