Fortum initiates strategic review of its Circular Solutions businesses
FORTUM CORPORATION INVESTOR NEWS 4 AUGUST 2023 AT 9:00 EEST
Fortum has decided to assess strategic options, including potential divestments, of its Circular Solutions businesses, as a result of the continuous review of its business portfolio. In March 2023, when Fortum launched its new strategy it was communicated that the Circular Solutions businesses are not in the core of the strategy. The group’s strategic focus is on delivering clean energy and drive decarbonisation of industries in the Nordics. Fortum continuously reviews, optimises, and rotates businesses for value creation and new growth.
The Circular Solutions businesses are responsible for operating, maintaining and developing Fortum’s recycling and waste assets as well as turbine and generator services and biobased solutions. Recycling & Waste provides waste management services and recycled materials to industrial and municipal customers. Its assets include waste-to-energy plants for municipal solid and industrial waste treatment and energy production; high temperature incineration plants for hazardous waste treatment and energy production; and recycling facilities for plastics, metals, ash and lithium-ion battery materials.
In 2022, these business operations employed approximately 1,300 people mainly located in the Nordics (Finland, Sweden and Denmark) and its comparable EBITDA was approximately EUR 70 million. At the end of 2022, the net assets of the Circular Solutions businesses were approximately EUR 700 million.
Fortum expects the strategic assessment to take approximately one year. There is no certainty whether the assessment will result in any transactions and Fortum will inform the market, if and when appropriate.
Fortum Corporation
Ingela Ulfves, VP, IR and Financial Communications
Further information:
Investors and analysts:
Ingela Ulfves, VP, IR and Financial Communications, tel. +358 40 515 1531
Rauno Tiihonen, IR Manager, tel. +358 10 453 6150
Media:
Newsdesk: tel. +358 40 198 2843
Fortum
Fortum is a Nordic energy company. Our purpose is to power a world where people, businesses and nature thrive together. We are one of the cleanest energy producers in Europe and our actions are guided by our ambitious environmental targets. We generate and deliver clean energy reliably and help industries to decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient, CO2-free power generation as well as reliable supply of electricity and district heat to private and business customers. For our ~5 000 employees, we commit to be a safe, and inspiring workplace. Fortum's share is listed on Nasdaq Helsinki. fortum.com
