Outokumpu and ThyssenKrupp's Inoxum form a European stainless steel giant
outokumpu The combined Outokukmpu and Inoxum is the leader in Europeran stainless steel industry with 50 percent market share.According to businessweek.com, combining Inoxum and Outokumpu would establish a European stainless-steel industry leader with about 50 percent market share. The merged businesses would have about 18,000 workers and annual sales exceeding EUR 10 billion.
Outokumpu expects to create significant cost synergies, starting in 2014 and estimated to reach a run-rate of EUR 225-250 million per annum by 2017 at the latest.
The steelmakers undertook to avoid compulsory redundancies and to preserve all German production sites until at least 2015, ThyssenKrupp said. The melt shop at its Krefeld plant will be gradually shut down by the end of next year, while the facility at Bochum will be preserved until the end of 2016. The agreement covers a planned total reduction of 850 jobs in Germany, with ThyssenKrupp offering alternative jobs for as many as 600 current Inoxum employees, Outokumpu said.
The deal still requires regulatory approvals.
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