Voestalpine sells German steel unit to investor Mutares

Voestalpine AG

23/10/2024 06:54

Oct 22 (Reuters) - Austrian steelmaker Voestalpine
 VOES.VI  has agreed to sell its German subsidiary Buderus
Edelstahl to investment firm Mutares  MUXG.DE , the companies
said on Wednesday, without disclosing the purchase price.
    Voestalpine said it expected the transaction to close by the
end of this year pending regulatory approvals. 
    Buderus Edelstahl employs 1,130 people and generated 362
million euros ($391.07 million) in sales in the fiscal year
2023/2024. 
    Mutares said it would negotiate a social plan with employees
if it becomes necessary to reduce the workforce, without
providing further details about any potential job cuts.
    "We are confident that, despite the current economic
climate, the overwhelming majority of employees will have a
long-term future at this location," Voestalpine board member
Reinhard Noebauer said.   
    Voestalpine said in March it was looking to sell Buderus
Edelstahl as part of a reorganization of its automotive
components unit in Germany.
    Last week, it laid out a plan to reorganise its automotive
component business locations in Germany, including the closure
of one of the sites, to respond to falling demand and structural
changes.
    
($1 = 0.9257 euros)
    

 (Reporting by Tristan Veyet and Andrey Sychev, Editing by
Rachel More)
 ((andrey.sychev@thomsonreuters.com))