Outokumpu will now start to centralize advanced materials production in Germany to Dillenburg. In practice, this means that precision strip operations will be transferred from Dahlerbrück to Dillenburg. Outokumpu will also close its coil service center in Hockenheim and transfer the volumes to other sites. The closure of Hockenheim is expected to be completed by the end of the second quarter of 2024, and Dahlerbrück operations are to be closed by the end of 2024 and partially transferred to the Dillenburg mill.
The restructuring measures are expected to entail yearly savings of approximately EUR 15M. The total restructuring cost for both sites including the social plan and shut-down costs total approximately EUR 28M. Previously, Outokumpu had recorded in the Q4 2023 EBIT an adjustment item of approximately EUR 30M related to the planned closures. Investments and costs related to the transfer of the precision strip production from Dahlerbrück to Dillenburg are expected to amount to EUR 22M, the majority of which will be realized during the year 2024.
