Ovako sells ball mill in Forsbacka
Ovako has reached an agreement to sell its ball mill in Forsbacka to newly formed Forsbacka Kulverk AB. The ball mill, which currently has six employees, mainly produces grinding balls for the mining and cement industries. Its total production volume in 2015 was nearly 4,000 metric tons. Under the agreement, Forsbacka Kulverk AB will take over the operations from 1 January 2017.
"Since our decision to close our facility in Forsbacka we have been actively seeking a long-term owner for the ball mill to ensure continuity for the business and allow it an opportunity to grow. We are therefore very pleased to have reached agreement with Forsbacka Kulverk AB and its owner Damasteel AB, a locally based buyer that sees great potential in the business and has a long-term plan for its operation," says Rickard Qvarfort, President of Ovako Bar Smebox.
The agreement also includes a five-year supply contract under which Ovako will provide 90 percent of the ball mill’s steel requirements. In addition, Ovako will be able to conduct sub-contracted rolling at Forsbacka Kulverk AB as necessary.
The planned sale has been negotiated under the Co-Determination in the Workplace Act (MBL). Other parts of the facility in Forsbacka remain under Ovako’s management until 28 February 2017, when operations will cease.
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For more information please contact:
Oskar Bosson, Head of Group Communication, 46 (0)8 622 13 16
Nicholas Källsäter, Head of Group Business Control, 46 (0)8 622 13 23
Ovako develops high-tech steel solutions for, and in cooperation with, its customers in the bearing, transport and manufacturing industries. Our steel makes our customers’ end products more resilient and extends their useful life, ultimately resulting in smarter, more energy-efficient and more environmentally-friendly products.
Our production is based on recycled scrap and includes steel in the form of bar, tube, ring and pre-components. Ovako is represented in more than 30 countries, and has sales offices in Europe, North America and Asia. Ovako’s sales in 2015 amounted to EUR 834 million, and the company had 2,905 employees at year-end. For more information, please visit us at www.ovako.com
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