Outokumpu's and SMI's asset swap finalized
The Outokumpu Group of Finland and the SMI (Societá Metallurgica Italiana) have finalized the agreement whereby SMI Group exchanges its superconductors business in Italy and its air-conditioning and refrigeration tube operations in China for Outokumpu's 50% shareholding in LOCSA - Laminados Oviedo Cordoba, S.A. of Spain, until now equally owned (50%/50%) by the two Groups.
The transaction is well in line with Outokumpu's strategy to move downstream in the production chain. It enables Outokumpu to focus on products such as superconductors with high growth potential and also to strengthen Outokumpu's position in the higher value-added air-conditioning and refrigeration copper tube market in China.
The superconductor business in Fornaci di Barga, Italy, employs some 100 persons and generated in 2002 net sales of EUR 16 million. The Changzhou air-conditioning and refrigeration tube mill, in Jiangsu province, China, generated net sales of EUR 10 million and employs some 70 persons.
The acquisition strengthens Outokumpu's market position as the world's leading supplier of superconducting wire. Major customers are manufacturers of superconducting magnets for medical MRI (Magnet Resonance Imaging) applications. Outokumpu supplies superconductors also for scientific instruments and international scientific projects. Its other Superconductors units are located in Pori, Finland and Waterbury, CT, USA.
The Chinese tube mill included in the transaction, also strengthens Outokumpu Copper's market position as the largest manufacturer of high-quality copper tube (ACR) for heating, ventilation and air-conditioning appliances and systems in the world. Outokumpu Copper produces these tubes in the US, Asia and Europe. The company's research center in Franklin, KY, the US has developed a special technology to produce thin wall, inner-grooved welded tube. Additionally, similar seamless tubes are manufactured by Outokumpu Cast & Roll ® technology in Europe and Asia.
Outokumpu Copper operates globally. It has a strong competitive position in its traditional markets in the US and Europe. In recent years investments to South-East Asia and China have made it a significant supplier of copper products for the globally operating as well as the local customers. Main customer groups are in the heat transfer, electrical, electronics, and telecommunications industries as well as in the building & construction and automotive industries. The manufacturing units are located in the US, Finland, Sweden, The Netherlands, Belgium, Spain, Italy, France, Austria, Britain, China, Malaysia, Thailand and Mexico. Net sales of Outokumpu Copper in 2003 were EUR 1 626 million and today it employs some 7 500 people.
Further information:
Antti Kilpinen, Director, Outokumpu Copper Superconductors, tel. +358 2 626 6111
Mirja Lavisto, Manager - Communications, Outokumpu Oyj/Copper, tel. +358 40 506 6954