Finland-based stainless steel producer Outokumpu has announced that it will divest the majority of its Long Product business operations to Italy-based Marcegaglia Steel Group. Outokumpu will now focus on its core business of flat stainless steel products.
The company expects to complete the divestment by the end of this year.
The transaction includes Long Product melting, rod and bar operations in Sheffield, UK; bar operations in Richburg, US; and the wire rod mill in Fagersta, Sweden. The transaction does not include Outokumpu Long Products AB operations in Degerfors and Storfors, Sweden. Approximately 650 employees in Sheffield, Richburg and Fagersta will transfer to the buyer as a part of the transaction. Outokumpu Long Products AB’s units continue their operations for now as part of the Outokumpu, and different options are to be evaluated for the future of the units.
The Long Product business’ net sales revenues totaled €810 million in 2021. The unit delivered 250,000 mt of products to the market in the given year. The sales of the Long Products business accounted for approximately eight percent of Outokumpu’s sales in 2021.