NEW YORK Outokumpu Oyj
expects to grow significantly in North America as a result of
its proposed merger with ThyssenKrupp AG stainless arm Inoxum
Group, the company said Tuesday.
"In addition to the synergy
savings, the transaction carries a significant growth upside in
North America through a new integrated stainless steel mill in
Calvert, Ala.," Outokumpu said, confirming its commitment to
selling Essen, Germany-based Inoxums Terni mill in Italy
in order to receive European Commission approval for the
"As a binding remedy, Outokumpu
commits to the divestiture of the Inoxum stainless steel mill
in Terni, Italy, and select European service centers," the
Espoo, Finland-based company said.
The commission rejected a
previous proposal by Outokumpu to divest its stainless units in
Sweden, which will now remain within the company.
Outokumpu also addressed
concerns that the divestment of Terni would hamper its expected
synergies from the deal (
amm.com, Oct. 8).
"Despite the divestiture of the
Terni operations, the company estimates to reach annual synergy
savings of approximately 200 million ($257.6 million),"
The Terni sale excludes tubular
unit Tubificio di Terni SpA, as well as a bright annealing
production line with a capacity of 130,000 tonnes per year. The
latter will be transferred to another Outokumpu production
site, the company said.