Stainless Steel Manufacturer Sells Stake in Tube Business
09/30/2015 - Outokumpu is divesting its stake in its Mexican stainless tube joint venture for US$63 million and will use the proceeds to pay down debt, the company has announced.
In a statement, the company said it is selling its 50 percent stake in Fischer Mexicana S.A. de C.V. to partner F.E.R. Fischer Edelstahlrohre GmbH because the business is not a core operation.
“As a joint venture, Fischer Mexicana has served its purpose well. However, as the tubular products of this joint venture are not at the core of our current business, we wanted to seize the opportunity to sell our share in the company and thereby contribute to our debt reduction efforts,” said Outokumpu CEO Mika Seitovirta in a statement.
“Fischer remains a valued, long-standing customer that we will continue to serve with strong commitment.”
Established in 1998, the joint venture originally was made up of ThyssenKrupp Mexinox and Fischer. Outokumpu later became a partner in the joint venture when it acquired ThyssenKrupp’s stainless division.
The JV is Mexico’s largest stainless tube producer.
The deal is expected to close in the fourth quarter. Outokumpu’s other Mexican operations are unaffected, it said.
“As a joint venture, Fischer Mexicana has served its purpose well. However, as the tubular products of this joint venture are not at the core of our current business, we wanted to seize the opportunity to sell our share in the company and thereby contribute to our debt reduction efforts,” said Outokumpu CEO Mika Seitovirta in a statement.
“Fischer remains a valued, long-standing customer that we will continue to serve with strong commitment.”
Established in 1998, the joint venture originally was made up of ThyssenKrupp Mexinox and Fischer. Outokumpu later became a partner in the joint venture when it acquired ThyssenKrupp’s stainless division.
The JV is Mexico’s largest stainless tube producer.
The deal is expected to close in the fourth quarter. Outokumpu’s other Mexican operations are unaffected, it said.
