Metso Corp. (Espoo, Finland) has signed an agreement to sell its Ferrous business to SMS group (Düsseldorf, Germany), a global company providing technology and services in plant construction and mechanical engineering for the metals industry. The businesses to be divested include, for example, travelling-grate pelletizing and Circored direct reduction process, as well as the related service business. Approximately 180 employees, primarily based in Germany, India and China, are planned to join the SMS group at the closing of the transaction.
The closing of the transaction, which is subject to regulatory approvals, is expected to take place in the first quarter of 2026. The above-mentioned businesses, excluding the related services, are part of the businesses that have been reported as discontinued operations in Metso’s financial reporting since October 2023. The parties have decided not to disclose the value of the transaction. The transaction has no material profit and loss impact on Metso.
“SMS group is a great home for the ferrous technologies. It can offer both focus and scale for these businesses and hence capitalize on their full potential together with the strong team that is committed to further develop these technologies for the benefit of the customers,” says Piia Karhu, President of the Minerals business area.
“We are very pleased to add these future technologies to our product portfolio including the respective know-how carriers. The intention is for the CircoredTM technology to help us pursue our ambition to be a leading partner in the green transformation of the metals industry,” says Thomas Hansmann, Chief Technology Officer of SMS group.
Metso has also made additional decisions related to the rest of the Ferrous and Heat Transfer and Metals and Chemical Processing businesses that have been reported as discontinued operations. Metso will retain the businesses that have a positive market outlook and strong synergies with the company’s offering to the copper and battery minerals industries. Planning of wind down will be initiated for the rest of the businesses. The retained businesses will be reported as part of the Minerals segment.
Metso announced its decision to divest its Ferrous and Heat Transfer and Metals and Chemical Processing businesses in March 2023.