Outokumpu and ThyssenKrupp reach merger agreement
A merger agreement has been reached between ThyssenKrupp and Outokumpu.
Negotiation consultants may have been used by Outokumpu, as it has confirmed it has reached an agreement with ThyssenKrupp about the scope of its merger.
It would combine ThyssenKrupp's stainless steel unit Inoxum to put it under Outokumpu's operational leadership, pending approval of the board of directors.
The Bochum melt shop would be preserved until the conclusion of 2016, while German production sites will not have any compulsory redundancies until the end of 2015.
However, the meltshop in Krefeld would be shut down by December 31st 2013, while a total of 850 jobs would be lost in Germany.
As many as 600 current Inoxum employees would be given alternative roles in ThyssenKrupp.
This agreement represents a significant milestone in the merger, Outokumpu said.
Chief executive officer of the firm Mika Seitovirta recently stated: "Outokumpu's business results continued to be unsatisfactory in the last quarter of 2011."
"I am however pleased with the progress we have made in improving our cash flow and restructuring our organisation," he added.
Posted by Ken Hayes
Source: Outokumpu stock exchange release, January 31st