English

OUTOKUMPU AIMING FOR NUMBER ONE POSITION

Report this content 
OUTOKUMPU OYJ  STOCK EXCHANGE RELEASE August 31, 2004 at 2.00 pm


OUTOKUMPU AIMING FOR NUMBER ONE POSITION IN STAINLESS STEEL –
LOOKING FOR OPTIONS TO DIVEST COPPER PRODUCTS

Outokumpu’s Board of Directors has today concluded that the
Group’s future strategic aspirations will be based upon leadership
in stainless steel. To support this development, Outokumpu’s
divestment program will now concentrate on looking at various
options to exit from the Group’s fabricated copper products
business. This is a logical continuation of the portfolio
development and will significantly lower the Group’s gearing ratio
while also releasing management and financial resources. Outokumpu
has retained Merrill Lynch as its financial advisor. After these
steps Outokumpu will be a financially strong and strategically
focused stainless group.

Following the successful implementation of the growth strategy
since 2000 stainless steel has become clearly the main business of
Outokumpu, representing already today some 80% of the Group’s
operating capital and two thirds of net sales. Continuing on this
path Outokumpu intends to increasingly focus on stainless steel
with a clear target of becoming the number one in the sector. This
is already supported by the ongoing expansion of the stainless
steel capacity at Tornio, which will be available in full in early
2005. The natural development from there onwards is the further
growth of the stainless steel business.

Stainless steel is a lucrative business where the annual growth of
the market has been some 5 to 6% over the past two decades,
exceeding the growth of other metals and GDP. The growth of the
stainless steel market is forecasted to continue strong in the
future, as well. Outokumpu is already one of the four major
producers of stainless steel and aims to become the global leader
in that business leveraging fully its competitive edge.

For further information:

Karri Kaitue, Executive Vice President – Strategy and business
development, tel. +358 9 421 5506

Eero Mustala, SVP - Corporate Communications, tel.+358 9 421 2435,
mobile +358 40 504 5146, eero.mustala@outokumpu.com


OUTOKUMPU OYJ
Corporate Management

Johanna Sintonen
Vice President - Investor Relations
tel. +358 9 421 2438, mobile +358 40 530 0778, fax +358 9 421 2125
e-mail: johanna.sintonen@outokumpu.com

Subscribe