Outokumpuk, a global stainless steel manufacturer with various operations in North and South America, has signed an agreement with Lujiazui International Trust Co., Ltd regarding Shanghai Krupp Stainless Co., Ltd. (SKS) in China. SKS is a Shanghai-based joint venture between Outokumpu and Baosteel, who have held 60% and 40% respectively. Being part of Outokumpu’s business area APAC, SKS has a cold rolling capacity of 290,000 tonnes and the mill employs over 450 people.
According to the agreement, Outokumpu will divest 55% of SKS shares to Lujiazui International Trust. Outokumpu still holds a five percent share of SKS and continues to operate the cold rolling mill. The transaction cash value of the divestment of Outokumpu’s 55% holding in SKS is about EUR 370 million. As a result of the transaction, Outokumpu’s net debt is expected to decrease by approximately EUR 430 million.