Outokumpu divests its pipe plant in Wildwood, Florida, US to Ta Chen International Inc., a master distributor in the US and part of a Taiwan-based listed company Ta Chen Stainless Pipe, Ltd.
The divestment serves Outokumpu’s financial and operational interests, allowing Outokumpu to focus on its stainless steel production in the US in Calvert, Alabama and Richburg, South Carolina. Thus, Outokumpu’s other operations in the US remain unchanged.
The cash consideration of the transaction is approximately EUR 25 million, depending on the amount of the net working capital at the closing. The transaction reduces Outokumpu’s net debt by approximately the same amount. Outokumpu does not consider the overall financial impact of the transaction to be material, and reports the transaction as an adjustment in its third-quarter 2017 results.
Outokumpu is a global leader in stainless steel. We create advanced materials that are efficient, long lasting and recyclable – thus building a world that lasts forever. Stainless steel, invented a century ago, is an ideal material to create lasting solutions in demanding applications from cutlery to bridges, energy and medical equipment: it is 100% recyclable, corrosion-resistant, maintenance-free, durable and hygienic. Outokumpu employs some 10,000 professionals in more than 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki.