Metso to divest Ferrous business to SMS Group

Metso has signed an agreement to sell its Ferrous business to SMS Group, a global company providing technology and services in plant construction and mechanical engineering for the metals industry, for an undisclosed amount. The businesses to be divested include travelling grate pelletizing and the Circored direct-reduction process and the related service business.

Approximately 180 employees, primarily based in Germany, India and China, will join the SMS group once the transaction closes. Metso says the transaction has no material profit and loss impact on the company.

Metso, which is based in Espoo, Finland, announced its decision to divest its Ferrous and Heat Transfer and Metals and Chemical Processing businesses in March 2023.

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.

“SMS Group is a great home for the ferrous technologies,” says Piia Karhu, president of Metso’s Minerals business area. “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.”

SMS Group says the transaction includes technologies it aims to develop further to benefit customers, support the green steel strategy and strengthen its service portfolio.

“We are very pleased to add these future technologies to our product portfolio, including the respective know-how carriers," says Thomas Hansmann, chief technology officer of SMS Group. "The intention is for the Circored technology to help us pursue our ambition to be a leading partner in the green transformation of the metals industry.”

Metso also has 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. The company 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 for the wind down of the rest of the businesses will be initiated. The retained businesses will be reported as part of the Minerals segment, Metso adds.