Thyssenkrupp (tk) has agreed to sell its Italian stainless steel mill, Acciai Speciali Terni (AST), to Italy’s Arvedi. The deal includes the associated sales organisation in Germany, Italy and Turkey.

AST currently employs around 2,700 people and generated sales of around €1.7 billion ($2 billion) in fiscal year 2019/2020.

The parties have agreed not to disclose the purchase price, and the closing of the transaction is expected in the first half of 2022, Kallanish learns from thyssenkrupp. The German company notes it is examining a possible minority shareholding in AST.

“We are pleased to have found a new owner for AST in the Arvedi Group, which will drive the development of the company with investments and innovations,” says thyssenkrupp’s Volkmar Dinstuhl, the current chairman of AST.

“This transaction is strategic for the whole Italian economy and represents an initial step towards new exciting developments,” says founder and president of Arvedi, Cavaliere Giovanni Arvedi. He adds that “we are very pleased that tk is considering a potential minority shareholding in AST”, which he says is proof of tk’s trust in the company.

For thyssenkrupp, the sale means the end of a process lasting many years, after it decided to part with its tradition of making stainless steel, and divested most activities to Outokumpu.

Earlier this summer, four companies were reported shortlisted for acquiring AST. Apart from Arvedi, these were Marcegaglia, Posco and Baosteel, according to union sources.