Outokumpu said it is selling a 55 percent share in the joint venture to Lujiazui International Trust Co., Ltd. It had owned 60 percent; partner Baosteel owns 40 percent. Under the agreement, Outokumpu will retain a 5 percent stake in the business and continue to operate the mill, which has a cold rolling capacity of 290,000 metric tons and employs more than 450 people. Says Mika Seitovirta, Outokumpu CEO: “The SKS joint venture with its cold rolling mill has been a well-functioning operation. However, it is focused on the most common stainless steel grades, whereas our strategy in China and the Asia-Pacific region is to differentiate from the competition with specialty grades and tailored solutions. This divestment is the next logical step in this path, and it significantly strengthens our balance sheet.” The transaction cash value of the divestment of Outokumpu’s 55 percent stake is about EUR 370 million. As a result of the transaction, Outokumpu’s net debt is expected to decrease by approximately EUR 430 million. Outokumpu expects to record a non-recurring capital gain of about EUR 330 million in the fourth-quarter results. The closing of the transaction is expected by the end of November 2015 and subject to customary regulatory approvals in China. Says Jan Hofmann, President and head of business area APAC: “Lujiazui International Trust has entrusted Outokumpu to operate the SKS mill and serve its customer base. At the same time, we continue to consequently execute our strategy in the region, focusing on providing specialty stainless steel products for the most demanding industrial sectors such as energy, chemical and plant engineering, where Outokumpu already has a strong position. In this context we will expand our regional R&D capabilities and further strengthen our segment specific business development through our wide regional sales and service center network.”