To this end, the Finnish stainless-steel producer is acquiring a 10 percent stake in Cronimet North-East GmbH, an intermediate holding company which directly and indirectly holds the shares in Cronimet's northeastern European companies.

Outokumpu and Cronimet are working together to optimize the raw material cycle: regionally processed scrap for the production and consumption of stainless steel in Europe.

“This partnership is another step towards achieving the sustainable development goals: a low carbon footprint in the production of stainless steel with regional scrap and through shorter transport routes to Outokumpu’s stainless-steel mills,” says Jürgen Pilarsky, CEO of Cronimet Holding GmbH.

In addition to supplying Outokumpu's European stainless-steel mills with stainless-steel scrap from Cronimet's sites in northeastern Europe, the two companies have also agreed in this partnership to work together on innovation and research. Together they intend to work on technologies that contribute to the decarbonization of the stainless-steel industry. The partnership also focuses on reducing costs through better planning on both sides and reducing waste within the supply chain.

As a shareholder, Outokumpu acts as a strategic partner in Cronimet's North-East Europe business, expanding the existing successful cooperation. Cronimet retains full operational control over the participating companies of Cronimet North-East GmbH. An expansion of the shareholding in Cronimet North-East or an investment in other companies of the Cronimet Group is not planned.

The completion of the transaction is subject to customary closing conditions and regulatory approvals by the competition authorities.