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The combined entity will cut its annual capacity by 1.4 million tonnes, through the previously announced closure of the meltshop in Krefeld, Germany at the end of 2013.

The group also plans to close the meltshop in Bochum, Germany by the end of 2016, pending a review of its financial performance in 2015, while a reduction of thin cold rolling capacity in Sweden from 2014 onwards is still being considered.

“We recognise the challenges we face, and we are determined to take the necessary steps to reach sustainable profitability. Of the approximately €200 million annual synergy savings we seek – €50 million already in 2013 and €150 million by the end of 2014 – we will get them from planned mill closures, higher utilisation rates, economies of scale in raw material purchasing, and streamlining of sales, service centres, IT and other general costs,” Outokumpu's ceo Mika Seitovirta said.

Outokumpu aims to cut its global workforce by 2,000 jobs in the next four years through restructuring plans.

Both ThyssenKrupp and Outokumpu have announced that merged operations are to begin on December 29.