20 February 2024 | The Mannesmann Stainless Tubes Group (MST), a subsidiary of Salzgitter AG, is being sold to the Italian company Cogne Acciai Speciali for a price of 135 million euros, Salzgitter announced on Tuesday. The transaction is still subject to the approval of the authorities.
Burkhard Becker, CFO of Salzgitter AG, commented on the sale of Mannesmann:
“We pursue active portfolio management with strategic acquisitions and growth steps as well as sales of companies that are not part of our defined development areas. This approach is an integral part of our Group strategy “Salzgitter AG 2030″. Cogne offers MST and its employees further entrepreneurial opportunities in the new group and is a renowned industrial partner.”
The sale price of EUR 135 million corresponds to the net book value.
Salzgitter stock price temporarily fell by 0.65 per cent to EUR 24.32 via XETRA on Tuesday.
The tube expert Mannesmann Stainless Tubes Group (MST) is a manufacturer of seamless stainless steel and nickel-based tubes. The products are mainly used in power generation and in the chemical and petrochemical industries, sectors in which specialised materials such as stainless steel are preferred due to their corrosion and heat resistance. As a stainless steel tube manufacturer, MST is not integrated into the Salzgitter Group’s supply of primary materials.
MST joined Salzgitter AG in 2000 together with Mannesmannröhren-Werke. At that time, the Mannesmann Group was taken over by the British telecommunications company Vodafone and subsequently broken up. According to its own information, MST has around 1000 employees worldwide, 260 of whom work at the two German sites in Remscheid and Mülheim in North Rhine-Westphalia. There are further sites in France, Italy and the USA.
The Salzgitter Group continues to be represented by the companies Mannesmann Precision Tubes GmbH, Mannesmann Line Pipe GmbH, Mannesmann Grossrohr GmbH and the tube bending plant of Salzgitter Mannesmann Grobblech GmbH.
Background
Salzgitter AG positions itself as a leading German steel and technology group focussing on sustainable innovation and the transformation of its products and processes with the aim of achieving a circular economy.Around 25,000 employees work for the Group worldwide. With initiatives such as SALCOS® – Salzgitter Low CO2 Steelmaking, Salzgitter AG aims to make steel production more sustainable.
Cogne Acciai Speciali, an international company with production facilities on three continents and sales offices worldwide, is active in the processing of specialised steels and alloys for various industries. The company processes austenites, martensites, ferrites, duplex and superduplex materials through to nickel-based alloys for the automotive industry, the energy sector, in particular the oil and gas industry, medical technology, the food industry, chemical and plant engineering and general mechanical engineering.