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Outokumpu Signs Final Agreement with Tubinoxia on Tubular JV
09/26/2011 - Outokumpu and Tubinoxia, an Italian company controlled by Andrea Gatti, have signed the agreement on the joint venture (JV) for Outokumpu's tubular unit (OSTP). Tubinoxia will become a minority owner of OSTP with an option to become a majority owner in three years.
Outokumpu and Tubinoxia, an Italian company controlled by Andrea Gatti, have signed the agreement on the joint venture (JV) for Outokumpu's tubular unit (OSTP). Tubinoxia will become a minority owner of OSTP with an option to become a majority owner in three years. The purpose of the JV, which is expected to become effective from the beginning of October, is to turn OSTP into a profitable entity.
The main terms of the agreement are according to the letter of intent, which was announced in July. Outokumpu will manage OSTP through a board of directors. The majority of the members including the chairman will be appointed by Outokumpu as long as it is the majority shareholder. Tore Bäckström, Senior Vice President at Volvo Bus Corp. with responsibility for the operations in North and South America, has been appointed chairman of the board. Other members are Andrea Gatti, Outokumpu's CFO Esa Lager, and Christer Asp, a long-time OSTP executive who has held numerous positions, including having responsibility for the units in Jakobstad in Finland and Saudi Arabia.
Gatti will assume the position of the managing director for OSTP. He has more than 25-years' experience in the stainless steel industry as an entrepreneur and he was an Outokumpu executive during 2005-2009. Kalle Luoto from Outokumpu has been appointed the Chief Financial Officer of OSTP. The turnaround plan, which includes significant streamlining of the production structure, optimization of the product portfolio, and general cost reduction, is expected to be finalized during the coming weeks.
OSTP produces welded stainless steel process pipes and tubes as well as threaded and butt weld fittings. It employs about 850 employees and has 10 production sites in Sweden, Finland, Saudi Arabia, Estonia, and Canada. The Wildwood unit in Florida (U.S.), previously part of OSTP, will not be part of the joint venture, but will remain fully owned by Outokumpu.
Outokumpu is a global leader in stainless steel with the vision to be the undisputed number one. Outokumpu employs about 8000 people in more than 30 countries. The Group's head office is located in Espoo, Finland.
