Ovako sells ball mill in Forsbacka
Ovako has reached an agreement to sell its ball mill in Forsbacka to newly formed Forsbacka Kulverk AB. The ball mill, which currently has six employees, mainly produces grinding balls for the mining and cement industries. Its total production volume in 2015 was nearly 4,000 metric tons. Under the agreement, Forsbacka Kulverk AB will take over the operations from 1 January 2017.
"Since our decision to close our facility in Forsbacka we have been actively seeking a long-term owner for the ball mill to ensure continuity for the business and allow it an opportunity to grow. We are therefore very pleased to have reached agreement with Forsbacka Kulverk AB and its owner Damasteel AB, a locally based buyer that sees great potential in the business and has a long-term plan for its operation," says Rickard Qvarfort, President of Ovako Bar Smebox.
The agreement also includes a five-year supply contract under which Ovako will provide 90 percent of the ball mill’s steel requirements. In addition, Ovako will be able to conduct sub-contracted rolling at Forsbacka Kulverk AB as necessary.
The planned sale has been negotiated under the Co-Determination in the Workplace Act (MBL). Other parts of the facility in Forsbacka remain under Ovako’s management until 28 February 2017, when operations will cease.
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