Outokumpu Oyj : divests its branch distribution business in Mexico

Outokumpu divests its branch distribution business in Mexico

Outokumpu Corporation
News
June 24, 2024

​Outokumpu divestsits branch distributionbusinessin Mexico

Outokumpu has agreed on selling its branch distribution business in Mexico City, Guadalajara and Monterrey - formerly known as Outokumpu Mexinox Distribution (OMD). The company reached an agreement with Prominox, the largest stainless-steel distributor in Mexico, who will acquire the ongoing business operations and customer base from Outokumpu. ​

OMD stores and sells stainless steel to the Mexican market. They are under the operation of Outokumpu's business area Americas. The divestment of the business is due in part to dedicate more resources to the strategic areas of the Americas (Mexico and U.S.)as the warehouses serve largely smaller volumes.

"We thank our OMD employees who have been committed to the success of our company in Mexico," saysTamara Weinert, President, business area Americas at Outokumpu. "Prominox has been a great business partner, and we are pleased that our employees and customers will remain in good hands."​

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"We are delighted to incorporate Outokumpu's solid distribution business into Prominox and welcome its amazing crew with open arms," says Ivette Autrique, President, Prominox. "We are confident that by adding the strategic locations and customer base to our portfolio, we are reinforcing our position as the leading stainless-steel distributor in Mexico. Our long and ongoing partnership with Outokumpu will be key to ensure a smooth transition. Welcome to the team!"

Outokumpu will continue to fulfill customers' orders that are served by OMD untilthe transactionwithProminox is finalized, after which orders will be transferred to Prominox.

The sale isexpected to be concluded within the next several weeks. Financial terms of the transaction were not disclosed.

For more information

Outokumpu media desk, tel. [phone] or e-mail media: [e-mail]