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EU: ThyssenKrupp buyback to stun stainless steel market

 |  December 12, 2013

Finland-based Outokumpu’s unexpected decision to sell back to ThyssenKrupp two stainless steel plans is dashing hope of consolidation and market recover, reports say.

Europe’s stainless steel market was a reportedly headed towards much needed consolidation as the industry is facing overcapacity and low prices.

But Outokumpu’s decision to sell back assets to their original owner will replace a competitor in the market, boosting the number from three to four. The Finnish company first acquired the plants in 2012, but announced plans to sell back the France-based units last month.

The move boosts ThyssenKrupp’s position in the stainless steel market, adding even more competition to an already crowded industry, reports say.

Full Content: Reuters

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