Outokumpu to sell majority of long products segment for €228M

Stainless steel producer Outokumpu Oyj agreed to sell the majority of its long products segment to Marcegaglia Steel SpA in a €228 million deal, over two years after Outokumpu launched a strategic review of the business.

The sale will allow the company to focus on its core business of flat stainless steel products, Outokumpu said July 12. The long products segment accounted for about 8% of Outokumpu's sales in 2021.

Outokumpu flagged an impairment loss of €50 million on the transaction in its third-quarter results. Closing is expected by the end of 2022.

The sale includes the long products unit's melting, rod and bar operations in Sheffield, U.K., as well as the bar operations in Richburg, S.C., and the wire rod mill in Fagersta, Sweden. About 650 workers in Sheffield, Richburg and Fagersta will be transferred to Marcegaglia.

The Outokumpu Long Products Ab operations in Degerfors and Storfors in Sweden are not part of the transaction. Outokumpu said it will evaluate the future of the units.

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