Outokumpu Oyj (OUT1V), the Finnish steelmaker that bought ThyssenKrupp AG (TKA)’s Inoxum unit last year, said it will dismiss 1,000 more employees in Europe to compensate for overcapacity amid a supply imbalance. The shares rose.
“These measures are necessary to achieve turnaround in this difficult environment,” Chief Executive Officer Mika Seitovirta said in a statement. “Today’s announcement introduces a solid industrial plan to turn Outokumpu back to profitability.”
European steelmakers are struggling with overcapacity as imports from Asia worsen a supply glut amid waning demand from the reigion’s automakers and construction companies. ThyssenKrupp agreed last month to cut 1,300 jobs as well as reducing weekly hours in its European steel unit, citing an “extremely difficult” situation in the industry. Today’s announcement brings Outokumpu’s planned job cuts to 3,500.
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via Outokumpu Cuts 1,000 More Jobs as European Steel Market Slumps – Businessweek.
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