Finland’s Outokumpu tells Kallanish that it has initiated what it calls a strategic review of its business area Long Products.
This is being done as part of the stainless steel specialist’s process to determine “… optimal long-term business mix for the company” it says in a statement.
The steelmaker will investigate multiple options regarding the business area’s future including opportunities for consolidation within the stainless long products markets. The strategic review is expected to be finalised during 2020.
The long products business area covers bars, wire-rod, wire, rebar and semi-finished products in a broad range of tailored grades (100+) covering all stainless and some other alloys. There are production facilities in three countries, including two in Sheffield in the UK where the steelmaker operates a meltshop. There are also two plants in Sweden in Degefors and Fagersta and one in the US in Richburg, South Carolina.
The Long Products business area had net sales of €642 million ($707m) in 2019 and generated negative adjusted Ebitda of €7m, the company confirms.