Metso Outotec to further reduce its metals presence

Finland-based Metso Outotec, after completing a strategic review, says it will initiate the divestment of its Metals & Chemical Processing and Ferrous & Heat Transfer business units. The CEO of Metso Outotec has indicated that in part the disinvestment will allow it to focus even more thoroughly on its Aggregates and Minerals business line.

The Metals & Chemical Processing business unit includes metallurgical off-gas and sulfur burning acid plants, fluid-bed technologies and gas cleaning systems, according to a Metso Outotec spokesperson. The Ferrous & Heat Transfer unit includes its sintering and pelletizing technology for iron ore pellet production, plus rotary kilns and calcination technologies.

In late 2021, Metso Outotec agreed to sell its Metal Recycling business line to an affiliate of Mimir, an investment company based in Stockholm. That business unit includes the Lindemann and Texas Shredder brands and now operates as Lindemann Metal Recycling Solutions.

“Several options were considered when evaluating the strategic fit of the Metals businesses in Metso Outotec’s portfolio and the best environment to develop them,” Metso Outotec President and CEO Pekka Vauramo says. “The past two years’ performance has proven that the offering is competitive and the business is healthy.

“However, our strategy focuses on accelerating the growth and profitability of our Aggregates and Minerals businesses, which also have a strong aftermarket potential. Metals’ Smelting business complements our sustainable nonferrous metals market offering, and therefore we will continue developing it as part of Metso Outotec, whereas the Metals & Chemical Processing and Ferrous & Heat Transfer businesses can be best developed with an owner that can offer both focus and scale and hence capitalize on the full potential of the technologies.”

The company's Smelting business unit sales totaled 155 million euros ($168 million) last year. Metso Outotec’s product offerings in that sector include its PM Kaldo furnace, which it says can be used for smelting and converting various primary and secondary raw materials, including copper scrap, anode slimes and electronic scrap.