Outokumpu Wasacopper and Aurajoki to join their electrolytic coating businesses

The two Finnish companies Outokumpu Wasacopper Oy and Aurajoki Oy, a company specialised in metal coatings, have made an agreement to join their electrolytic coating businesses and form a new company, AuraCoat Oy.

This arrangement will strengthen the competitiveness of both companies and the new company will become the biggest domestic electrolytic coatings subcontractor with some 23 % market share. It will also enable both companies to focus on their core businesses. Aurajoki will concentrate on zinc coatings business and Outokumpu Wasacopper will further strenghten its copper component manufacturing and development together with customer industries.

The agreement will be finalized after the acceptance of competition authorities. Aurajoki Oy will hold some 80% and Outokumpu Wasacopper about 20% of AuraCoat Oy shares.

According to plan, AuraCoat Oy will start its operation on September 1, 2004 and its turnover will be some EUR 7 million with a total number of 70 employees.

Aurajoki Oy, owned by CapMan Capital Management, Nordea and the operative management, specializes in metal surface treatment businesses and was founded in 1967. Its turnover was over EUR 18 million in 2003 and the number of personnel 210.

Outokumpu Wasacopper Oy manufactures copper components for the electrical industry and it belongs to Outokumpu Group's Copper business area. It employs 70 persons in Vaasa and its turnover was over EUR 10 million in 2003. Outokumpu Copper operates globally. 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 USA, 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 7 600 people.

For additional information:

Ulla Laalo, President, Outokumpu Wasacopper Oy,
tel. +358 6 3280 420 or +358 40 725 5174, www.outokumpu.com

Toni Casagrande, Managing Director, Aurajoki Oy,
tel. +358 201 746 408 or +358 400 501 883, www.aurajoki.fi