Outokumpu has begun a strategic review of its high performance alloys or VDM business unit. During this review, Outokumpu will evaluate strategic options for VDM and consider its best options to drive continued growth and profitability for the business, within or outside of Outokumpu.
“Given the challenging economic and market environment, we want to investigate strategic options for the VDM business unit with the aim of improving our profitability and strengthening our balance sheet while ensuring the realization of at least EUR200 million of synergy savings enabled by the Inoxum acquisition,” said Outokumpu CEO, Mika Seitovirta.
Outokumpu acquired VDM as part of Inoxum in 2012. VDM is a global leader in the market for corrosion and heat resistant high-performance materials, such as nickel, titanium and zirconium alloys. VDM serves a wide range of customers in the aerospace, energy, chemical and other industries. In 2012, VDM had sales of EUR1.3 billion and approximately 2,000 employees. During the review, the VDM unit will continue to operate within Outokumpu. The strategic review is expected to be finalized before the end of the year.