Stainless steel producer Outokumpu, headquartered in Finland has started a strategic review of its high performance alloys VDM business unit.
The company is evaluating its strategic options for VDM and considering how best to drive continued growth and profitability for the business, within or outside of Outokumpu.
Outokumpu acquired VDM as part of the acquisition of Inoxum from ThyssenKrupp Steel 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 and serves a wide range of customers in the aerospace, energy, chemical and other industries. In 2012, VDM had sales of €1.3bn and approximately 2000 employees.
Outokumpu CEO Mika Seitovirta said: “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 €200M of synergy savings enabled by the Inoxum acquisition.”
During the review, the VDM unit will continue to operate within Outokumpu. The strategic review is expected to be finalised before the end of the year.