Scholz completes sale of aluminum, stainless steel business

The Scholz Holding GmbH has announced the sale of its aluminum and stainless steel business. The scrap metal company, based in Essingen, Germany, had earlier announced plans to sell off the businesses that it considered noncore assets as a step in the process to realign and restructure the company.

The sale of the aluminum and stainless steel businesses follows the sale of a 40 percent stake in Scholz made by Japan’s Toyota Tsusho Corp.

For aluminum, Scholz sold its 60 percent stake in the aluminum trading business MMG Aluminium AG (MMG) to its existing management. The company also sold a 50 percent stake in ScholzAlu Stockach (SAS) to its management and the remainder to an unnamed firm.

Scholz also has sold its stainless steel group to a strategic Indian investor. Scholz says that the buyer expects to use the purchase as a way to extend and strengthen its stainless steel business in Europe.

The deal for Scholz’s stainless steel business is expected to be completed by no later than the end of the third quarter of the year. The stainless steel division includes 460 people.

Following the sale of the divisions, Oliver Scholz, CEO of Scholz Group, says, “After the successful completion of the two disinvestments, we can now fully concentrate on our core businesses. In addition, the proceeds from the sale will make a significant contribution to such plans to reduce net debt of our group by 2015 to around 700 million euro.”