Outokumpu Oyj, a manufacturer of stainless steel in Finland, has agreed to sell the bulk of its Long Products division to the Italian Marcegaglia Steel Group for EUR 228 million (USD 229 million), according to the firm.
Outokumpu stated that it would concentrate on its main line of business, flat stainless steel products, and that it anticipates finishing the divestiture by the end of the year.
In 2021, the Outokumpu Group's Long Products division, which manufactures products including wire rods and rebars, was responsible for around 8% of revenues.
According to preliminary estimates, Outokumpu will declare an impairment charge of 50 million euros ($50.16 million) connected to the divestiture in its interim report for the period of January to September 2022.
In addition to the impairment loss that will be included in the business's third-quarter results, the company stated that it does not anticipate any more meaningful gains or losses from the acquisition.
A wire rod mill in Fagersta, Sweden, bar operations in Richburg, the United States, and melting, rod, and bar activities of Long Products are all included in the agreement.
Around 650 personnel from Sheffield, Richburg, and Fagersta, according to Outokumpu, will move to Marcegaglia Steel. The business will continue to operate Long Products in Sweden's Degerfors and Storfors.
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