AvestaPolarit Oyj Abp (AP) and ThyssenKrupp Nirosta GmbH (TKN) have signed a letter of intent for AP to purchase the stainless steel quarto plate business of TKN. This TKN business has its current main manufacturing facilities in Krefeld and Mulheim, with significant hire processing contracts in Duisburg, Siegen and Altena, all in Germany. Annual deliveries for this business are almost 40,000 tonnes, which amount to net sales of approximately EUR 95 million.
AP intends to relocate the quarto plate manufacturing activities to the AP operation at Degerfors, Sweden, although certain hire processing activities will remain sourced from Germany. TKN will give full support to AP during the transition period. Closing of the transaction is expected by the end of December 2002, provided that due regulatory approvals will be received.
AvestaPolarit’s CEO Ossi Virolainen commented: “This transaction will increase AvestaPolarit’s cost efficiency and competitiveness as a manufacturer of stainless steel special products in the global quarto plate market. It will enable AvestaPolarit to provide an improved service to its customers, particularly in Europe. This transaction will also strengthen and increase our production of quarto plate in Degerfors.”
