Outokumpu and Thyssenkrupp AG Have Completed The Inoxum Transaction

Outokumpu and ThyssenKrupp AG have completed the Inoxum transaction. Outokumpu announces last week the completion of the Inoxum transaction. With close to 40% market share in Europe and 12% globally, the broadest portfolio in the industry and unparalleled technical expertise and customer knowledge, Outokumpu starts as a clear global leader in stainless steel and high performance alloys.

The new Outokumpu starts operations on December 29, 2012 with a new structure and leadership 

The transaction enables a strategic optimization of production capacities, production locations and supply routes. In addition, transaction enables savings in procurement, logistics, sales, IT and in support functions. The combination is structured to create significant annual cost synergies of EUR 200 million on an annual basis, of which EUR 50 million are expected already in 2013, and cumulatively up to EUR 150 million in 2014 

ThyssenKrupp becomes a major shareholder in Outokumpu through directed share issue, holding 29.9% of the shares 

Mr Mika Seitovirta, Chief Executive Officer of Outokumpu said “The rationale for building this new industry powerhouse remains as strong as ever; optimizing our production structure, expanding both our product portfolio and market presence to growth markets in the Americas and Asia and reaching annual synergy savings of approximately 200 million euros. We have the scale and expertise to bring innovation to our customers. The breadth and depth of our technical and application expertise offers customers the best possible advice in materials selection across all application areas. In addition, we will be able to offer competitive delivery times, and local service wherever the customer is,.”

The combined entity has approximately 16 900 employees, combined revenues of EUR 9.6 billion (2011 pro forma) and annual cold rolling capacity of approximately 2.8 million tonnes.