Steel service company Feon acquires AluSteel – “The acquisition brightens up the Finnish steel business”
PRESS RELEASE 4.5.2020 EET 10:15 Helsinki
Finnish steel service company Feon has acquired AluSteel, a company based in Uusikaupunki, Finland. Feon aims to position itself as one of the biggest steel service companies in Finland. CEO Petri Kalliokoski states that the acquisition brightens up the Finnish steel product wholesale business that has struggled with oversupply and a gloomy economic outlook during the coronavirus crisis.
Feon Ltd, a subsidiary of Onvest Ltd, has acquired Uusikaupunki-based AluSteel Ltd. The deal was closed on April 30th. The combined revenue of both companies is estimated to reach over 100 million euros.
AluSteel specializes in the business of custom cut metals. Feon is the leading producer of structural steel in Finland. Petri Kalliokoski, the CEO of Feon, states that the goal of the transaction is to position Feon as one of the leading steel service companies in Finland. According to Kalliokoski, the products and services of AluSteel compliment Feon´s current strengths and expertise.
“We make a perfect, complimentary match. By combining our strengths we are able to provide a broad range of products and services to our current customers in machine and equipment manufacturing – as well as in all phases of metal and steel construction. It is our ambition to ensure that our customers can acquire all the steel products they need without compromising convenience or reliability”, Kalliokoski claims.
Steel wholesale business goes digital
According to Kalliokoski, the digital revolution has begun to transform the steel industry at a growing speed since last year. E-commerce hasn’t been as commonly utilized in the steel industry as in many others. The coronavirus crisis is changing the ways in which business is conducted.
“The industry has been quite stable during recent years but suddenly all of our sales operations have gone remote. It’s vital that our customers can purchase the steel products needed in a digital, efficient and a convenient way. Feon has been the forerunner of e-commerce in the Finnish steel business. Now we can see the work we have done the past few years truly is paying off”, Kalliokoski says.
The Finnish steel industry has recently struggled with global competition and oversupply.
“The Finnish steel industry needs a structural transformation. This acquisition brightens up the entire industry as we improve the competitiveness of domestic customers by offering our products in a reliable and efficient manner. We will be able to bring also new alternatives to the market.”
Growth strategy to continue
For AluSteel the acquisition secures long-term opportunities.
“We are delighted by the steady ownership that Feon and its Finnish owner, the family company Onvest, can offer us. We have been given a significant opportunity to develop our business and a chance to enable a broader sales network”, claims CEO of AluSteel, Pekka Putro.
Petri Kalliokoski, the CEO of Feon, says that new acquisitions will be possible in the future.
“The acquisition of AluSteel is the first step in our strategic journey”, Kalliokoski states.
The deal was closed on April 30th and the transaction has been effective as of May 1st 2020.
AluSteel and its staff continue to work as a subsidiary to Feon.
For more information:
Petri Kalliokoski, CEO