Voestalpine sells German steelmaker Buderus Edelstahl

Austrian Voestalpine has completed negotiations on the sale of its German subsidiary Buderus Edelstahl. This is stated in the message of the group.

The buyer of the company in Wetzlar (Hesse) is the investment company Mutares. The parties agreed not to disclose the sale price. The transaction is expected to be completed by the end of the fourth quarter of this year, and is subject to approval by the relevant antitrust authorities.

With the sale of Buderus Edelstahl, voestalpine’s High Performance Metals division will concentrate its product portfolio on the technologically sophisticated segment, while reducing the share of standardized tool steel and high-quality engineering steel, which are under increasing pressure due to increased competition from outside Europe.

“We have been intensively looking for investors, talking to many companies and exploring various options. With Mutares, we have found a prestigious investor with extensive experience in managing companies in times of transformation to take over Buderus Edelstahl. The sale is aimed at optimizing the product portfolio of the High Performance Metals Division, which will strengthen its global market position in the long term,” said Herbert Eibensteiner, CEO of voestalpine AG.

Johannes Laumann, Chief Information Officer of Mutares, noted that with the acquisition of Buderus Edelstahl, the company further strengthens its engineering and technology segment in the steel components sector and secures its own steel base.

Buderus Edelstahl has been part of voestalpine AG since 2007 and is a leading producer of high-quality standard and special steel, whose products are mainly used in the vehicle, plant and machinery construction, as well as in the design of tools and molds.

As GMK Center reported earlier, voestalpine Group announced the reorganization of its German automotive components production facilities due to changes in the market and declining demand.

The plants in Dettingen, Schmelln, Schwäbisch-Gmünd and Böhmkirch will be merged into a single network with each company’s narrow specialization. However, the Birkenfeld plant will be closed due to financial difficulties.