AvestaPolarit to acquire the stainless steel quarto plate business of ThyssenKrupp Nirosta
AvestaPolarit to acquire the stainless steel quarto plate business of ThyssenKrupp Nirosta AvestaPolarit Oyj Abp ('AP') and ThyssenKrupp Nirosta GmbH ('TKN') have today signed a letter of intent for AP to purchase the stainless steel quarto plate business of TKN. This TKN business has its current main manufacturing facilities in Krefeld and Mulheim, with significant hire processing contracts in Duisburg, Siegen and Altena, all in the Federal Republic of Germany. Annual deliveries for this business are almost 40 000 tonnes, which amount to net sales of approximately EUR 95 million. The intention of AP is to relocate the quarto plate manufacturing activities to the AP operation at Degerfors, Sweden, although certain hire processing activities will remain sourced from Germany. TKN will give full support to AP during the transition period. Closing of the transaction is expected to be by end December 2002, provided that due regulatory approvals will be received. AvestaPolarit's CEO Ossi Virolainen comments "This transaction will increase AvestaPolarit's cost efficiency and competitiveness as a manufacturer of stainless steel special products in the global quarto plate market. It will enable AvestaPolarit to provide an improved service to its customers, particularly in Europe. This transaction will also strengthen and increase our production of quarto plate in Degerfors. This is a major positive development for the Degerfors site, where the Degerfors Stainless long products operation is due to close in 2003." AP's Hot Rolled Plate business unit has its main production facility in Degerfors. Its net sales in 2001 amounted to EUR 195 million and production of quarto plate was about 65 000 tonnes. The business unit currently employs about 550 people. For further details please contact: Leif Rosén, Senior VP - Hot Rolled Plate tel: +46 586 476 00 or +46 70 330 4186 e-mail: leif.rosen@avestapolarit.com Katarina Lybeck, Senior VP - Corporate Communications tel: +358 9 5764 5505 or +358 40 503 0750 e-mail: katarina.lybeck@avestapolarit.com AvestaPolarit Corporate Management Linnoitustie 4 A, PO Box 270, FIN-02601 Espoo, Finland. Tel: +358 9 5764 5511, fax: +358 9 5764 5555 Vasagatan 8-10, PO Box 16377, SE-103 27 Stockholm, Sweden. Tel: +46 8 613 3600, fax: +46 8 613 3669 Registered office: Espoo, Business ID: 0823312-4 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/09/19/20020919BIT00380/wkr0001.doc http://www.waymaker.net/bitonline/2002/09/19/20020919BIT00380/wkr0002.pdf