Outotec dumps non-core businesses

Finnish processing tech and services company Outotec is divesting three businesses in its metals, energy and water segment “to better focus on its core technologies in minerals processing and metals refining”, according to CEO Markku Teräsvasara
Outotec dumps non-core businesses Outotec dumps non-core businesses Outotec dumps non-core businesses Outotec dumps non-core businesses Outotec dumps non-core businesses

Outotec has taken a strategic decision to divest three businesses in the metals, energy and water segment

Staff reporter

Outotec, which is in the process of being merged with fellow Finnish industrial group Metso's minerals arm, is ridding itself of businesses related to aluminium, waste-to-energy and sludge incineration. 

On the aluminium and energy side, the company will no longer be dealing with green anode plant, rod shop and certain casthouse technologies, as well as biomass, wood waste and various other fuel plants.

The sludge incineration business to be divested, in turn, is in charge of the delivery of plants for treatment of municipal and industrial sludge.

For all areas, Outotec is also dumping any related service operations.

In total, this move will affect about 250 experts working across these areas.

"We of course remain committed to serving our energy and aluminium customers until these divestments have been completed," Teräsvasara said.

According to Outotec's 2019 financial results, the businesses would be classified as discontinued operations. 

The company has also lowered its sales guidance for 2019 due these actions, as well as "delays in certain received and anticipated orders leading to lower sales recognition". Expected sales have been lowered by around €50 million (US$55.5 million), although the company increased the adjusted EBIT by around €40 million.