It is reported that the takeover of ThyssenKrupp's high grade steel group Inoxum by Finland's Outokumpu will create the world's largest stainless steel producer. But the move will cost hundreds of jobs in Germany and elsewhere.

After buying the stainless steel unit Inoxum from German industry giant ThyssenKrupp, Finland's Outokumpu company is planning to cut 1,500 jobs worldwide, up to 850 jobs of them in Germany alone.

Outokumpu's CEO Mr Mika Seitovirta said that the cuts would be needed to reduce excess capacity and streamline operations at the remaining production sites.

Mr Heinrich Hiesinger chairman of ThyssenKrupp said that "We're not looking for a speedy and complete withdrawal from Inoxum. The company has growth potential."

Apart from a plant in Krefeld, all of Inoxum's German production facilities will be maintained until the end of 2015, but the job cuts will come earlier.

However, at least until 2016, there will be no compulsory redundancies. ThyssenKrupp said it would offer alternative jobs to some 600 people within the company, which is also a major manufacturer of elevators, submarines and car parts. Other jobs would go with routine fluctuation.

At present, the Inoxum group employs 11,500 people in Germany, Italy, Mexico, China and the United States of America. It has annual sales of more than EUR 6 billion. But massive write downs last year pushed ThyssenKrupp as a whole deeply into the red.

The merger between Outokumpu and Inoxum will result in the biggest player in stainless steel production with an expected annual turnover of EUR 12 billion.

(Sourced from www.dw.de)