Outotec has agreed to sell its fabrication and manufacturing businesses in South Africa and Mozambique to SPS Holdings Company, a firm which will then become Outotec’s agent to the ferrochrome industry in that part of the world.
The transaction is expected to become effective on June 1, but both parties have agreed not to disclose the acquisition price, Outotec said.
“The South African facility, in Brits, serves primarily ferrochrome plants and the Mozambique facility provides services and spare parts for the aluminium industry,” the company said. The combined annual sales have been approximately €15 million ($16.6 million). The majority of the 255 employees are working in fabrication and manufacturing and will transfer as old employees, Outotec added.
“As of June 1, SPS Holdings will be providing fabrication services, site works and local supplies for Outotec’s customers acting as the company’s agent to the South Africa ferrochrome industry,” the company said.
Tomas Hakala, Head of Outotec’s Service Business, said: “SPS Holdings, with its local operations, is well-positioned to run these businesses.
“Outotec’s service strategy is to offer expert services for our proprietary products, process and technologies. Together with SPS Holdings our joint aim is to use our local experience to build and grow a service-oriented business to help customers to get the best return for their investments.”