Strategic Transformation
As part of its strategic transformation into a diversified specialty chemicals and advanced materials company, OM Group decided in late 2006 to sell its nickel-based business to OJSC MMC Norilsk Nickel. We made this decision because we had concluded that the nickel group was no longer a core component of OMG's business, and it was an ideal time in the base metals cycle to capture full and fair value for our nickel assets. The ownership transition of the nickel group, and service provided to nickel customers throughout this period, ensured a seamless move for both employees and customers.
The sale supports OMG's transformation by enabling the company to simultaneously achieve three mission-critical objectives:
Through five-year supply agreements with Norilsk, OMG has cost effectively diversified, shortened and stabilized its supply chain for various cobalt and nickel-based materials. The deal also allows both companies to leverage their core competencies.
Now that the sale is complete, OM Group plans to use the proceeds, in part, to grow its value-added specialty products business through strategic acquisitions and new product development. Going forward, OMG will continue to focus on its strategy to deliver predictable and sustainable financial results and build long-term value for its shareholders, customers and employees.
