Outokumpu loses Terni and VDM in favor of Thyssenkrupp

Outokumpu announces comprehensive measures to strengthen its balance sheet, providing for a plan to reduce the share of borrowed capital, stabilize the structure of shareholders and deprivation of TERNI and VDM. Outokumpu signed a binding agreement with Thyssenkrupp, by which, to correct the situation, Outokumpu should sell Terni assets and VDM THYSSENKRUPP business debts in Outokumpu (1269 million euros at the end of September 2013) to Thyssenkrupp in full volume.

The deprivation of Terni rights is aimed at fulfilling the requirements of the decision of the European Commission of Legal Protection. The transaction includes a stainless steel plant in Terni in Italy and all related legal entities Terni, as well as Outokumpu service centers in Germany (Willich), Spain (Barcelona), Turkey (Goebze) and France (Tour). The transaction is subject to approval by the European Commission, with which the companies began the necessary approvals. This transaction will submit the final settlement of all protective measures related to the obligations between Outokumpu and Thyssenkrupp.

Sale of VDM Thyssenkrupp is the result of a thorough strategic plan of VDM, announced in May 2013. As part of the Outokumpu transaction, the VDM business in favor of Thyssenkrupp will be deprived, and all about 2,000 employees will be transferred to Thyssenkrupp. In 2012, VDM sales amounted to 1.3 billion euros. The general director of Outokumpu said: “The deal with Thyssenkrupp will significantly strengthen our balance. I am especially glad to successfully resolve the situation with Terni. During the strategic assessment of VDM, we came to the conclusion that the synergy between the VDM business and the main stainless production of Outokumpu will be very limited and the transaction from the transaction from Thyssenkrupp was defined as the best way out. "