In a decisive move towards strategic consolidation, Outokumpu has successfully concluded the divestment of its remaining Long Products business in the regions of Degerfors and Storfors, Sweden. The company had previously unveiled this intention on April 1, 2023, after already divesting the majority of its Long Products business earlier in the year. The transaction with Cogne Acciai Speciali has now been finalized, solidifying Outokumpu's exit from the long products sector.With this transformative step, Outokumpu firmly redirects its focus towards its core business, prioritizing stainless steel flat products and ferrochrome ventures. Notably, the company's plate operations in Degerfors remain untouched and continue unaffected by the divestment.The enterprise value of this strategic maneuver amounts to a substantial €12 million, and its implementation has rendered a positive cash impact for Outokumpu. However, the company's financial records indicate a loss of approximately €30 million for the third quarter due to this transaction. The precise quantification of this book loss remains subject to final consideration, closing accounts, and accumulated translation difference.
In a decisive move towards strategic consolidation, Outokumpu has successfully concluded the divestment of its remaining Long Products business in the regions of Degerfors and Storfors, Sweden. The company had previously unveiled this intention on April 1, 2023, after already divesting the majority of its Long Products business earlier in the year. The transaction with Cogne Acciai Speciali has now been finalized, solidifying Outokumpu's exit from the long products sector.With this transformative step, Outokumpu firmly redirects its focus towards its core business, prioritizing stainless steel flat products and ferrochrome ventures. Notably, the company's plate operations in Degerfors remain untouched and continue unaffected by the divestment.The enterprise value of this strategic maneuver amounts to a substantial €12 million, and its implementation has rendered a positive cash impact for Outokumpu. However, the company's financial records indicate a loss of approximately €30 million for the third quarter due to this transaction. The precise quantification of this book loss remains subject to final consideration, closing accounts, and accumulated translation difference.
