Metso completed divestment of its Ferrous business to SMS group, transferring technologies, services, and 180 employees without material financial impact.
Metso Corporation has officially finalized the divestment of its Ferrous business, marking a significant strategic milestone in the company’s ongoing transformation. The completion of the transaction was confirmed in a press release issued on January 5, 2026, at 11 a.m. Under the agreement, the Ferrous business has been transferred to SMS group, a globally recognized provider of technology and services for plant construction and mechanical engineering within the metals industry.
The divested Ferrous business comprises a portfolio of established technologies and solutions that have long supported ironmaking and steel production processes worldwide. These include, among others, the travelling grate pelletizing technology and the Circored™ direct reduction process, both of which are widely used in the preparation and processing of iron ore for downstream metallurgical applications. Alongside these core technologies, the transaction also covers the associated services business, ensuring continuity of technical support, maintenance, and lifecycle services for customers using these solutions.
As part of the divestment, approximately 180 employees have transferred to SMS group. These employees are primarily located in Germany, India, and China, reflecting the international footprint of the Ferrous business. The transfer ensures that valuable expertise, operational knowledge, and customer relationships are retained within the business as it transitions to its new owner. SMS group has emphasized the importance of integrating these teams to strengthen its own capabilities in ironmaking and related process technologies.
The decision to divest the Ferrous business was initially announced on May 30, 2025, following a strategic review by Metso. The review aimed to sharpen Metso’s focus on its core growth areas and long-term priorities. By divesting the Ferrous segment, Metso continues to streamline its portfolio and allocate resources toward businesses where it sees the strongest potential for innovation, profitability, and sustainable growth.
From a financial perspective, Metso has stated that the divestment does not have a material impact on the company’s financial position. This indicates that the transaction was primarily driven by strategic considerations rather than short-term financial gains. Metso remains committed to maintaining a strong balance sheet while pursuing targeted investments and development initiatives aligned with its core competencies.
For SMS group, the acquisition of the Ferrous business represents an opportunity to further expand and strengthen its offerings in ironmaking technologies and services. By integrating Metso’s Ferrous solutions into its existing portfolio, SMS group is well positioned to provide comprehensive end-to-end solutions to customers across the metals value chain. The addition of proven technologies such as travelling grate pelletizing and Circored™ is expected to complement SMS group’s existing expertise and enhance its competitive position in global markets.
Overall, the completion of this divestment underscores Metso’s disciplined approach to portfolio management and strategic focus, while also enabling SMS group to build on its role as a leading technology partner to the metals industry. The smooth transfer of operations, technologies, and personnel reflects careful planning and collaboration between the two companies, ensuring continuity for customers and employees alike as the Ferrous business enters its next phase under new ownership.
