Outokumpu and Sandvik have signed an agreement for Outokumpu to purchase full ownership of Fagersta Stainless wire rod mill in Sweden. Fagersta Stainless is currently a 50/50 joint venture owned by Outokumpu and Sandvik Materials Technology.
Fagersta Stainless is a leader in special stainless steel wire rod serving customers globally. In 2017, the company’s revenues were approximately EUR 150M and stainless steel deliveries amounted to 52,000 tonnes. Fagersta’s product offering complements Outokumpu’s ASR wire rod mill in Sheffield, UK, and Outokumpu plans to further develop both units to ensure continued offering of leading products and service to its wire rod customers globally.
The cash consideration of the transaction is EUR 18M. The transaction will be executed in two phases so that Outokumpu’s ownership will increase to 90% at the end of June 2018 and to 100% at the end of 2019. The completion of the transaction is subject to customary closing conditions.