Finland based stainless steel producer Outokumpu has announced that it will divest its 50 percent stake in the joint venture Fischer Mexicana S.A. DE C.V. (Fischer Mexicana) for $63 million to F.E.R. Fischer Edelstahlrohre GmbH (Fischer). Founded in 1998, Fischer Mexicana was originally formed by ThyssenKrupp Mexinox and Fischer, and has become the largest stainless tube producer in Mexico.
The closing of the transaction is expected in the fourth quarter of the current year and the positive cash impact will reduce Outokumpu’s debts. Outokumpu’s own operations in Mexico will remain unchanged.
“As a joint venture, Fischer Mexicana has served its purpose well. However, as the tubular products of this joint venture are not at the core of our current business, we wanted to seize the opportunity to sell our share in the company and thereby contribute to our debt reduction efforts. Fischer remains a valued, long-standing customer that we will continue to serve with strong commitment,” stated Mika Seitovirta, CEO of Outokumpu.