Metso has signed an agreement to sell its Ferrous business to SMS group, a global provider of technology and services in plant construction and mechanical engineering for the metals industry. The divestment includes technologies such as the travelling grate pelletising and the Circored™ direct reduction process, along with the associated service business.
As part of the transaction, approximately 180 employees — primarily located in Germany, India and China — are expected to transfer to SMS group upon the deal’s completion. The closing of the transaction is subject to regulatory approvals and is anticipated to take place in the first quarter of 2026.
The divested businesses, excluding related services, have been reported as discontinued operations in Metso’s financial disclosures since October 2023. The parties have agreed not to disclose the value of the transaction. According to Metso, the deal will not have a material impact on its profit and loss.
Commenting on the agreement, Piia Karhu, president of Metso’s Minerals business area, said:“SMS group is a great home for the ferrous technologies. It can offer both focus and scale for these businesses and hence capitalise on their full potential together with the strong team that is committed to further develop these technologies for the benefit of the customers.”
Thomas Hansmann, chief technology officer of SMS group, added:
“We are very pleased to add these future technologies to our product portfolio, including the respective know-how carriers. 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 has also made additional decisions concerning the remainder of its Ferrous and Heat Transfer and Metals and Chemical Processing businesses, which have also been reported as discontinued operations. The company will retain those businesses with a positive market outlook and strong synergies with its existing copper and battery minerals operations. The remaining businesses, for which no strategic fit has been identified, will undergo a planned wind-down. The retained units will be integrated into Metso’s Minerals segment.
Metso originally announced its intention to divest the Ferrous and Heat Transfer and Metals and Chemical Processing businesses in March 2023.
For more information visit www.metso.com
