Outokumpu sells its pipe plant in the USA

Outokumpu sells its pipe plant in Wildwood, Florida, USA to the leading US distributor of Taiwanese company Ta Chen International Inc. This was reported by the company MDM Group . The divestiture serves the company's financial and operational interests, allowing Outokumpu to focus on US stainless steel production in Calvert, Alabama and Richburg, South Carolina. As such, Outokumpu's other US operations remain unchanged. The cash consideration from the transaction is approximately EUR 25 million, depending on the amount of net working capital at closing. The deal reduces Outokumpu's net debt by about the same amount. Outokumpu does not believe the overall financial impact of the transaction is material and reports the transaction as an adjustment in its Q3 2017 results. Wildwood manufactures pipes of various types up to 84 inches in diameter. They are used in the chemical and petrochemical industries, offshore LNG transportation, the construction industry, the pulp and paper, food and pharmaceutical industries, and the automotive and aerospace industries.