Displaying items by tag: OutoKumpu

Outokumpu Oyj (business identity code: 0215254-2, “Outokumpu”) has 12 March 2012 received a notification based on Chapter 2, Section 9 of the Finnish Securities Market Act from Kansaneläkelaitos (business identity code: 0246246-0).

Such notification by Kansaneläkelaitos contains the following information:

In connection with the rights offering upon which the Board of Directors of Outokumpu decided on 7 March 2012, Kansaneläkelaitos has on 12 March 2012 entered into the sale and purchase agreements relating to the subscription rights. If such sale and purchase agreements are completed, Kansaneläkelaitos’ holdings in Outokumpu would fall below 5 percent of the shares and voting rights of Outokumpu. Kansaneläkelaitos currently owns 14 652 666 shares in Outokumpu.

The share capital of Outokumpu consists of 183 018 749 shares. Each share carries one vote.

The notification did not contain any other information.

Also following the above

Outokumpu Oyj (business identity code: 0215254-2, “Outokumpu”) has 12 March 2012 received a notification based on Chapter 2, Section 9 of the Finnish Securities Market Act from Ilmarinen Mutual Pension Insurance Company (business identity code: 0107638-1, “Ilmarinen”).

Such notification by Ilmarinen contains the following information:

Ilmarinen has on 12 March 2012 entered into a sale and purchase agreement pursuant to which the seller sells such amount of the subscriptions rights of Outokumpu received on the basis of the shares of Outokumpu owned by its Eläkevastuurahasto that, on the basis of this sale and purchase agreement and the similar and simultaneous sale and purchase agreement relating to the subscription rights to be entered into with another buyer, it is possible to subscribe for, by using cash received from the sale of the subscription rights and the seller’s cash amount of EUR 20 million, as many new shares of Outokumpu as possible pursuant to the subscription rights received on the basis of the shares of Outokumpu owned by Eläkevastuurahasto. In addition, the seller sells to Ilmarinen and to the above-mentioned other buyer all the subscription rights received on the basis of the shares of Outokumpu owned by its Kansaneläkerahasto. 

If such a sale and purchase agreement is completed, Ilmarinen’s holdings in Outokumpu would be between 5.1 and 6.61 percent of the shares and voting rights of Outokumpu (flagging threshold to be exceeded: 1/20).

Ilmarinen’s share of the subscription rights that are to be sold will be confirmed on the trading day which is the day before the last trading day of the subscription rights pursuant to the terms and conditions of the rights offering, i.e., on 26 March 2012.

The share capital of Outokumpu consists of 183 018 749 shares. Each share carries one vote.

Outokumpu has today published its online Annual Report 2011 including the Corporate Sustainability report in English. The report is available on our website at www.outokumpu.com/annualreport2011.  

Outokumpu's online Annual Report 2011 comprises the Business review, including a fully integrated Corporate Sustainability report, the Corporate Governance Statement, the Review by the Board of Directors and the Financial Statements 2011.

Outokumpu's Corporate Governance Statement is also available both in English and in Finnish as a separate PDF-file at www.outokumpu.com/investors.

OUTOKUMPU OYJ

Outokumpu confirms that it has reached an agreement in principle in its negotiations with ThyssenKrupp to combine Inoxum, the stainless steel unit of ThyssenKrupp, with Outokumpu under the operational leadership of Outokumpu. This is pending the approval of Outokumpu's Board of Directors later today and execution of definitive agreements.
The agreement reached with the German labor representatives overnight marks a significant milestone in the negotiations. Specifically, it covers the following areas:

• Closure of the Krefeld meltshop by end of 2013.
• The melt shop in Bochum will be preserved until the end of 2016.
• No compulsory redundancies in German production sites until end of 2015.
• Planned total reduction of 850 jobs in Germany of which ThyssenKrupp has committed to offer alternative jobs within ThyssenKrupp for up to 600 of current Inoxum employees.

According to the tentative agreement reached with ThyssenKrupp, the transaction would value Inoxum at an enterprise value of EUR 2.7 billion. The Consideration for Inoxum would comprise a cash payment of EUR 1 billion, new Outokumpu shares representing 29.9% of total share capital (post rights offering and directed share issue to ThyssenKrupp), a loan note of EUR 235 million (initial value) to be issued to ThyssenKrupp and the assumption by Outokumpu of certain liabilities of Inoxum of EUR 422 million. In connection with the transaction, Outokumpu plans to conduct a fully underwritten rights offering of EUR 1 billion, supported by certain key shareholders.

The combination would create significant cost synergies, starting in 2014 and estimated to reach a run-rate of EUR 225-250 million p.a. by 2017 at the latest. Any definitive agreement would be subject to customary closing conditions including regulatory approvals.

Mr. Kari Tuutti has been appointed Senior Vice President - Communications & Investor Relations as of 31 October 2011. He will report to CEO Mika Seitovirta. Mr. Tuutti will be responsible for Outokumpu's global external and internal communications and investor relations activities. He will be based in Espoo, Finland. Ms. Päivi Lindqvist, the current SVP - Communications and Investor Relations, will start her maternity leave on 24 October 2011 and her future role in Outokumpu will be announced later. 

Kari Tuutti is a Finnish citizen, born 1970 and holds a Master of Economics from Helsinki School of Economics. Over the past 12 years, he has held several senior communications, investor relations and marketing positions at Nokia Group.

CEO Mika Seitovirta: "Kari has an extensive experience in various global communications roles covering financial communications and investor relations, media relations as well as consumer marketing. I am very pleased to have him in the Outokumpu team and look forward to his contribution in transforming Outokumpu and driving our business forward."

Outokumpu and Tubinoxia, an Italian company controlled by Andrea Gatti, have signed the agreement on the joint venture for Outokumpu's tubular unit (OSTP). Tubinoxia will become a minority owner of OSTP with an option to become a majority owner in three years. The joint venture is expected to become effective from the beginning of October. Its purpose is to turn OSTP into a profitable entity and staying as an owner in the medium term enables Outokumpu to retain a substantial part of the expected value increase while still having the intention to divest the business.  

The main terms of the agreement are according to the letter of intent, which was announced in July. In the first phase Tubinoxia will own 36% of the shares in OSTP. Additionally, it has an option to acquire shares up to 51% in a three years' time period. Outokumpu has an option to redeem the shares initially acquired, at original value, if Tubinoxia will not acquire the majority. It is also agreed that Outokumpu will remain OSTP's main raw material supplier. The initial sale of shares will not result in any material financial impacts for Outokumpu. Outokumpu will initially be responsible for the financing of the business. Any future sale of shares would be executed at a price that is reflecting the then prevailing financial performance of the business.

Outokumpu will manage OSTP through a board of directors. The majority of the members including the chairman will be appointed by Outokumpu as long as Outokumpu is the majority shareholder. Tore Bäckström, Senior Vice President at Volvo Bus Corporation with responsibility for the operations in North and South America, has been appointed chairman of the board. Other members are Andrea Gatti, Outokumpu's CFO Esa Lager, and Christer Asp, a long-time OSTP executive who has held numerous positions, amongst others the responsibility for the units in Jakobstad in Finland and Saudi Arabia.  

Andrea Gatti will assume the position of the managing director for OSTP. He has more than 25-years' experience in the stainless steel industry as an entrepreneur and he was an Outokumpu executive during 2005-2009. Andrea Gatti has full trust and support from Outokumpu during the turn-around, which aims for a clear improvement in the performance of the business. Kalle Luoto from Outokumpu has been appointed the Chief Financial Officer of OSTP. The turnaround plan, which includes significant streamlining of the production structure, optimisation of the product portfolio and general cost reduction will be finalised during the coming weeks.

OSTP produces welded stainless steel process pipes and tubes as well as threaded and

butt weld fittings. It employs some 850 employees and has 10 production sites in Sweden, Finland, Saudi Arabia, Estonia and Canada. The Wildwood unit in Florida, USA, previously part of OSTP, will not be part of the joint venture, but will remain fully owned by Outokumpu.

* Stainless steel family gains a new duplex member

Duplex stainless steel is fast becoming the material of  choice for a wide range of stainless steel applications from architectural landmarks to a host of industrial processes. This trend is gaining further impetus with the launch by Outokumpu of a new duplex stainless steel grade featuring a higher mechanical strength than the major  duplex grades on the market.

Duplex stainless steel grades are commonly grouped into lean duplex, standard duplex and super duplex grades depending on their alloy content and corrosion resistance. The newest addition to this continuum, Outokumpu LDX 2404^®, shares the properties of lean duplex grades but differs from all other duplex grades in that it offers higher mechanical strength.

As such, the new grade is excellently positioned over the standard austenitic grade 316L and other duplex grades wherever the new grade’s high strength can be utilised – in bulk liquid storage tanks, road and rail tankers, pulp and paper machinery and water treatment facilities, among many other uses.

The new LDX 2404^® is also significantly more corrosion resistant than 316 due to a higher PRE value (higher Cr and N). This makes it excellently suited to the salty atmospheric conditions of buildings located close to the sea, for example, which can otherwise be prone to discolouration and pitting. The grade’s higher mechanical strength, which often allows thinner gauges to be used, offers additional benefits.

Chemical tankers today transport various types of loads, but in general, they all have strict requirements regarding pitting corrosion. The combination of corrosion resistance and higher strength of LDX 2404^® makes it a highly cost-effective solution for such applications.

Duplex stainless steel, an unbeatable formula

What makes duplex stainless steel special is that for the corrosion resistance offered by any specific traditional austenitic grade, there is nearly always a duplex counterpart that offers the same or better corrosion resistance, but also twice the strength. This, combined with the fact that these properties have been achieved with a lower overall alloy content than similar-performing austenitic grades, effectively ensures that the material can be used to achieve major thickness reductions and cost savings in a host of applications.

Storage tanks are an excellent example. The choice of duplex over austenitic grades offering similar corrosion resistance in the construction of tanks for the storage of liquid foods and chemicals has provided up to 50% material savings in some tank sections.

Commercial Manager Jan Engfeldt from Outokumpu explains: “As an example, the shell of a certain industrial storage tank would weigh 117 tonnes if built in standard stainless 4404 (316L). If built in LDX 2404^® the shell weighs only 72 tonnes. This is a thirtyfive tonnes saving in just one tank. Calculating the costs over a large project the savings can be quite significant.”

Other characteristic benefits of duplex stainless steels are low nickel content for price stability, as well as good fabrication properties and excellent resistance to pitting, crevice corrosion and stress corrosion cracking – translating into less maintenance, longer service life and minimised lifecycle cost.

Future proof, environmentally sound

It is often too little appreciated that stainless steel is 100% recyclable. Today, the recycled content of Outokumpu stainless steel is approximately 85%, and higher than the global industry average of 60% (according to the International Stainless Steel Forum ISSF).

Furthermore, stainless steel releases a very low level of metal ions to the environment and requires no hazardous coatings. Thanks to the high strength of duplex stainless steel, it is possible to reduce the weight of structures and lower energy consumption in transportand construction.

A new landmark is nearing completion in downtown Stockholm, the Stockholm Waterfront project incorporating a major congress center. The ambitions of the project include bringing exciting contemporary architecture to one of the most defining sections of the Swedish capital and implementing a green building concept focusing on energy consumption and sustainable materials. Here, cifecycle was an important criterion in the materials selection. After consultation with Outokumpu about stainless grades, corrosion resistance and strength, the architects became convinced that duplex stainless steel would be the correct choice.

Outokumpu is a pioneer in duplex stainless steels

The leading stainless steel producer Outokumpu is also the world’s foremost supplier of duplex stainless steels, with over 50% global market share. Committed to duplex steels for more than three decades, Outokumpu has pioneered many revolutionary applications of the materials together with customers and continues to develop new grades and uses of duplex steels.

About Outokumpu

Outokumpu is a global leader in stainless steel with the vision to be the undisputed number one. Customers in a wide range of industries use our stainless steel and services worldwide. Being fully recyclable, maintenance-free, as well as very strong and durable material, stainless steel is one of the key building blocks for sustainable future. Outokumpu employs some 7 500 people in more than 30 countries. The Group’s head office is located in Espoo, Finland. Outokumpu is listed on the NASDAQ OMX Helsinki. www.outokumpu.com

For more information please contact:

Jan Engfeldt

Commercial Manager

Outokumpu - BU, Special Coil & Plate

Tel. +46 226 813 48

Mob. +46 730 620 900

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Provider:

/Ins - Industrial News Service

Ben Idström

Managing Director

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