The Italian Cogne Acciai Speciali, which is part of Walsin, is responsible for the acquisition
Taiwan’s Walsin Lihwa has received approval from the Fair Trade Commission (FTC) to acquire Sweden’s Outokumpu Long Products AB. Kallanish reports about it.
Walsin Lihwa’s subsidiary – the Italian Cogne Acciai Speciali – which signed a contract with Outokumpu at the end of March 2023, is responsible for the acquisition.
In 2022, the Swedish company did not export products to Taiwan, so Taiwan’s FTC approved the acquisition because it believes that the merger will not affect the competitive situation for stainless steel billets and bar in the region.
Outokumpu Long Products AB has two plants in Degerfors and Storfors (Sweden) specializing in the production of stainless steel billets and bar. With this merger, Walsin Lihwa hopes to expand the European market and manage customers in the Nordic and Baltic regions.
As GMK Center reported earlier, at the beginning of 2023, Outokumpu completed the sale of most of the Long Products division, with the exception of those mentioned, to the Italian Marcegaglia. According to Matti Luhia, Head of M&A, Outokumpu, the divestiture of the remaining long rolled segment is the next natural step for Outokumpu in line with the company’s strategy to focus exclusively on its core business, stainless steel flat products and ferrochrome.
In 2022 Outokumpu registered net profit of €1.08 billion compared to €526 million in 2021. Sales increased by 31% y/y – up to €9.5 billion. Last year, stainless steel supplies decreased by 7% y/y – to 2.1 million tons.