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Outokumpu completes Cronimet North-East stake acquisition

It appears that Outokumpu has completed the acquisition of a 10% minority interest in Cronimet North-East, the German holding company of Cronimet’s business in northeastern Europe. This move is part of an expanded collaboration between Outokumpu and Cronimet, announced in November of the previous year. The collaboration aims to secure the sourcing and supply of high-quality scrap within northeastern Europe.

The focus of this partnership is on accelerating the circular economy in the Northeastern European market area, with the goal of sourcing recycled steel collected in the region. By doing so, Outokumpu aims to decrease the carbon footprint of its production by obtaining recycled steel of the best possible quality from nearby sources.

Outokumpu’s chief procurement officer, Marc-Simon Schaar, expressed the importance of expanding the existing successful cooperation to ensure the high quality of recycled steel and its proximity to production facilities.

In addition to the acquisition, the parties plan to collaborate on joint innovation and research initiatives. The objective is to improve technologies that can further reduce CO2 emissions, lower costs through better predictability, and drive waste reduction within the supply chain.

Outokumpu, as a shareholder, will act as a strategic partner in Cronimet’s northeastern business, while Cronimet will retain full operational control over the companies involved. It’s highlighted that Outokumpu does not envision vertical integration into the supply chain of stainless steel scrap as part of its raw material strategy. Instead, the company sees cooperation and partnerships as the way forward.

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