SMM5, 27 May: on May 23, Umicore reached an agreement with the Free Port Company (Freeport-McMoRan) of the United States to acquire the cobalt refinery and cathode precursor business of the free port cobalt industry in Kokkola, Finland. A total of $150 million through bonds and interest-free loans, plus about $40 million in working capital that will be taken over when it closes at the end of March. The transaction, which is subject to practice, including regulatory approval, is expected to be completed by the end of 2019 and will be funded by Umicore's existing credit facilities. The acquisition will increase revenue from 2020 and value from 2021.
Umicore did not acquire cobalt fine powder, chemicals, catalysts, ceramics and pigments located in the same location. These operations will continue to be operated by Freeport Cobalt, and the acquisition of the Kokkola Cobalt Refinery and cathode precursor production marks an important step in expanding the value chain of Umicore battery materials. Through its R & D, refining, precursor production, cathode material production and battery recovery operations in Europe, Umicore will integrate these businesses to provide ideal services for its battery and automotive customers' European operations and improve the local battery material supply chain. Through this European battery material supply chain, Umicore will make a significant contribution to the EU's plan to build a competitive and sustainable battery ecosystem.
Kokkola is the largest cobalt refinery in Europe. Kokkola Refinery is the largest cobalt refinery in Europe. Its refining and precursor technology is an ideal complement to Umicore, and the expertise and experience of its 250 employees is highly respected in the battery materials industry. The acquired business will provide a precursor for the production of Polanesa cathode materials, which will begin in the second half of 2020.
The Kokkola Refinery will use Umicore's long-term supply agreements to purchase cobalt raw materials from cobalt mining operations of the best industrial scale, which are fully in line with Umicore's framework for sustainable procurement of cobalt. These agreements are in line with Umicore's strategy to distinguish between quotations by proving to customers that their products do not contain any artisanal cobalt units and that there are no child labour.
Marc Grynberg, CEO of Umicore, commented: "this acquisition highlights our commitment to support the rapid growth of our battery materials customers in Europe and to provide them with the highest quality materials produced locally. Provide certified and clean raw materials. I am proud of Umicore's contribution to accelerating the transition to cleaner transport in Europe and the rest of the world.
With R & D, refining, precursor production, cathode material production and battery recovery operations in Europe, Umicore will provide a complete and sustainable local battery material supply chain for its battery and automotive customers in Europe. It has also made a significant contribution to the establishment of a competitive and sustainable battery ecosystem in Europe.
