Outokumpu improves stainless steel production in Europe
The European steel producer Outokumpu’s performance in the second quarter was relatively satisfactory, and the profitability improved from the first quarter. However, the company still has concerns about problems in the European business area.
The chief executive officer (CEO) said that to generate profits in a difficult operating environment, they must step up efforts to improve their cost competitiveness in Europe, particularly in commodity stainless steel production. The company aims to achieve further cost savings and optimize commodity stainless steel production in Finland and Germany.
The CEO pointed out that the factory in Tornio, Finland, has Europe’s most cost-effective and highest output. They intend to leverage Nordic clean energy and competitive energy prices.
Prominox buys Outokumpu’s Mexican distribution business
Stainless-steel supplier Prominox has acquired the Mexican distribution business of Finnish steelmaker Outokumpu, Kallanish learns.
The agreement includes large centres in Mexico City, Guadalajara and Monterrey formerly known as Outokumpu Mexinox Distribution (OMD).
“We are delighted to incorporate Outokumpu’s solid distribution business into Prominox being confident that by adding the strategic locations and customer base to our portfolio, we are reinforcing our position as the leading stainless-steel distributor in Mexico,” says Prominox’s president, Ivette Autrique.
In a separate note, Outokumpu confirms that the divestment of the OMD unit is due in part to dedicate more resources to the strategic areas of Mexico and the US as the warehouses serve largely smaller volumes. “We will continue to fulfil customers’ orders that are served by OMD until the transaction with Prominox is completed,” Outokumpu adds.
The acquisition is now awaiting approval from Mexican authorities and other closing conditions. The transaction should be completed during the next few weeks.
Prominox and Outokumpu did not reveal any financial details of the agreement.
Todor Kirkov Bulgaria
Outokumpu appoints Kati ter Horst as CEO
Outokumpu has appointed Kati ter Horst as president and chief executive, with effect from 9 October at the latest.
She will be located in Outokumpu’s headquarters in Helsinki, Kallanish learns. She joins Outokumpu from Belgian company Aliaxis, a leading fluid management systems company, where she has held the position of divisional ceo for the EMEA region since 2022.
Kati ter Horst has already been a member of the Outokumpu board of directors since 2016 and vice chairman since 2022. Following her appointment, she will resign from the board at the end of September 2024.
“Kati ter Horst has a strong track record in process industries and extensive international leadership experience from complex business environments. Outokumpu’s board of directors is confident that she is the right person to lead the company ahead,” says Kari Jordan, chairman of the board.
On 2 May, Outokumpu announced that incumbent ceo Heikki Malinen had decided to leave the steelmaker to pursue a career opportunity elsewhere.
Christian Koehl Germany
