Outokumpu has completed the divestment of the remaining Long Products business in Degerfors and Storfors to Cogne Acciai Speciali.
The sale was originally announced at the beginning of April (see Kallanish 1 April). It trailed the divestment of the majority of the Long Products business to Marcegaglia at the beginning of the year.
The enterprise value of the latest transaction is €12 million ($13m) and it has a positive cash impact for Outokumpu. The company will book a loss of approximately €30m for the third quarter.
Outokumpu has therefore exited production of long products for good, and is now focused fully on its core business, stainless steel flat products and ferrochrome. The plate operations in Degerfors are not affected by the divestment, Outokumpu notes.
Cogne Acciai Speciali is now part of Taiwan’s Walsin Lihwa, which is investing over €110m in Cogne’s Aosta plant between 2022-2024. The growth strategy involves gaining market share in Europe and Asia, and developing the group’s presence in the US. Cogne intends to boost output by adding shifts and hiring more workers.