Outokumpu has signed an agreement to sell its Stainless Welding business, Avesta Welding, including its distribution channels, to Böhler-Uddeholm of Austria.

With its main operations in Sweden, Indonesia and in the US, Outokumpu’s welding business employs approximately 160 people. Net sales for the business in 2004 were some EUR 38 million. The group’s product portfolio consists of welding consumables and chemicals for joining and surface finishing, including post-weld treatment, for stainless steel.

Outokumpu’s decision to sell the Welding business was based in part on the fact that it does not represent the core business of the Outokumpu Group. Outokumpu believes that Avesta Welding has a better strategic fit within the Böhler-Uddeholm Group.

The organization say the deal will have no significant impact on Outokumpu’s results. Closing of the transaction is subject to customary regulatory clearances.