Outokumpu to sell Mexican distribution business to Prominox

Finland’s Outokumpu has agreed to sell its distribution business in Mexico City, Guadalajara, and Monterrey, formerly known as Outokumpu Mexinox Distribution (OMD). The agreement was made with Prominox, the largest stainless-steel distributor in Mexico, which will acquire the ongoing business operations and customer base from Outokumpu.

OMD sells stainless steel to the Mexican market and operates under Outokumpu’s Americas business area. The divestment allows Outokumpu to allocate more resources to strategic areas in the Americas (Mexico and the U.S.), as the warehouses primarily handle smaller volumes.

Outokumpu will continue to fulfill customers’ orders through OMD until the transaction with Prominox is finalized, after which orders will be transferred to Prominox. The sale is expected to be completed within the next several weeks.