Nippon Steel & Sumitomo Metal Corporation (NSSMC) has officially closed the full acquisition of Ovako Group, Kallanish learns from the Swedish company. Ovako will become a subsidiary of NSSMC but will continue to operate under its own brand.
“We are very pleased to now fully begin our journey as part of NSSMC,” says Ovako president and chief executive Marcus Hedblom. “For Ovako, the acquisition means that we now have a strong industrial owner in the global steel industry.”
NSSMC says it hopes to use the acquisition of Ovako to boost its technology, quality and product development capacity for special steels. Ovako sold 783,000 tonnes of steel products in 2017, up 11% year-on-year, generating revenue of €921 million ($1.13 billion), up 18% y-o-y. It said earlier in the week that it intends to boost sales further to around 850,000t in 2020.
In the first quarter Ovako’s crude steel production rose 6% on-year to 283,000 tonnes. Quarterly net revenue of €271m ($330m) was up 16.3%% y-o-y and net profit grew to €18m from €11m in the year-before period. Ebitda increased by 32.3% to €41m, up from €31m in Q1 2017.
In its short-term outlook Ovako says it expects its Q2 sales volume to be higher than in the corresponding period last year. This is because of continued high industrial activity among its customers and a strong order stock.