Japanese company to buy steel producer Ovako
One of the world's largest steel producers, Nippon Steel, agrees to buy Ovako – producer and developer of high-tech steel solutions.
The Nippon Steel & Sumitomo Metal Corp (NSSMC) has signed an agreement to acquire 100 percent of the Ovako Group. The move gives Japan’s largest steelmaker a manufacturing base in Europe and makes it a global market leader in steel production.
“Ovako is a global technology leader regarding high-cleanliness steel for bearing steel and other advanced applications,” says Kosei Shindo, President of NSSMC. “Our goal with the acquisition of Ovako is to strengthen and expand our global business and further strengthen our technology, product quality, and product development capability for special steel, and securing a base of manufacture and sales in Europe, to strengthen our global special steel business.”
Important hub in Gävleborg
Ovako has an important hub in Hofors, Gävleborg, for two of its business areas – Bar Hofors-Hällefors, and tubing and ring. The company directly employs around 1,200 people in Hofors.
Read more about Gävleborg’s steel industry.
Ovako develops high-tech steel solutions for, and in cooperation with, its customers in the bearing, transport and manufacturing industries. Ovako steel makes its customers’ end products more resilient and extends their useful life, ultimately resulting in smarter, more energy-efficient and more environmentally-friendly products.
“I am very pleased that Ovako now will become part of NSSMC, a strong industrial owner and a clear technology leader in the global steel industry,” says Marcus Hedblom, President and CEO of Ovako. “Our target is to continue to grow over the coming years, and we expect that with the support and the technological leadership of NSSMC we will be able to bring even more value to our customers.”