Hautala: Transaction between Outokumpu and ThyssenKrupp important to Finland
Heidi Hautala, the Finnish Minister responsible for state ownership steering, welcomes the agreement reached between ThyssenKrupp and Outokumpu.
"With the transaction, a traditional Finnish steel company will become a new global leader in stainless steel. It will also improve the company's potential for steel production in Tornio, Finland. This is precisely the kind of development that the State and its holding company, Solidium, should promote."
Decisions on the transaction and participation in the related share issue were made by Solidium’s Board of Directors.
Minister Hautala believes that both will be successful.
"Outokumpu's and, for its part, also Solidium's management, have done good work in this project. The majority ownership of Outokumpu will remain in Finnish hands, with Thyssen becoming a major single owner. In addition to the State and Solidium, other investors will also have an opportunity to participate in Outokumpu's share issue and thus manifest the significance given to Finnish ownership.
Under Prime Minister Jyrki Katainen's Government Programme, the State is committed to a long-term increase in the shareholder value of state-owned companies.
"When necessary, this also requires concrete further measures by the owner," said Minister Hautala. At the same time, it will give an indication of Solidium's importance as a state instrument: "Without a holding company, such transactions would be possible only through the budget procedure and usually business deals do not follow Parliament's timetables.
In terms of cost-efficiency, Outokumpu's steel site in Tornio is a global leader. The combination will enable to optimise the site's production capacities and thus improve the profitability of operations.
As regards corporate responsibility, Outokumpu is among the most advanced companies in its field of activity and this will provide a sound basis for related action in the combined company. For several years already, Outokumpu has been a member of the Dow Jones Sustainability Indexes (DJSI). In the 2011 review, Outokumpu was one of the five best steel companies included in the DJSI World index.
Inquiries: Lauri Korkeaoja, Special Adviser, +358 440 788 282