The Elmet Group has signed a definitive agreement through its newly formed German subsidiary, Elmet Technologies GmbH, to acquire the assets of ams OSRAM’s tungsten and molybdenum manufacturing operations in Schwabmünchen, Bavaria, Germany.
The acquisition will establish Elmet’s first refractory-metals manufacturing operation in the European Union and create a European production base for tungsten and molybdenum powders, rods, wire, electrodes, and machined components.
The Schwabmünchen facility has operated since 1961 and provides a vertically integrated manufacturing chain spanning powder formation, pressing, sintering, swaging, drawing, and finishing. The site also contains a materials laboratory for chemical and physical analysis.
The facility covers approximately 26,800 square meters and produces more than 3,500 products, including metal powders, rods, pins, heavy and fine wire, cathodes, anodes, machined parts, and powder injection molded components.
Elmet plans to use the acquisition to create a local European supply source for critical refractory metals serving industries including defense, fusion and high-energy research, semiconductors, medical technology, automotive, and general industrial applications. Tungsten is designated as a critical raw material by the European Union, while European defense companies are increasingly seeking regional supply sources.
Elmet plans to retain the existing Schwabmünchen leadership and operating team and invest in the workforce, equipment, production capacity, quality systems, and commercial capabilities. It also intends to expand production into additional materials including TZM and tungsten heavy alloy.
Elmet also expects to support ams OSRAM and a recent spinoff through production agreements during the transition while continuing to serve external customers. The company plans to expand external sales and develop a broader digital commercial presence in Europe.
The transaction is expected to close in the first quarter of 2027, subject to regulatory approvals and completion of the transition work required to operate the facility on a standalone basis.
KEY QUOTES:
“We are excited to welcome the talented Schwabmünchen team to Elmet and build on the expertise and capabilities they have developed over many decades. We expect this acquisition to extend our vertically integrated tungsten and molybdenum platform into Europe, giving us a production base to serve customers there directly. It is intended to advance one of our key post-IPO objectives of expanding our footprint in Europe. This is a natural next step in our long-term growth strategy, and by establishing a local presence, we believe we can better serve the needs of European and UK customers with greater speed and reliability. We are confident the acquisition will position us to deepen relationships with customers across the region.”
Peter V. Anania, CEO and Chairman of the Board of The Elmet Group
“From powder through finished component, the Schwabmünchen operations are expected to provide our defense, fusion, semiconductor, medical, and industrial customers a European source for tungsten and molybdenum. We look forward to building on their foundation and integrating the site’s talent and capabilities into the broader Elmet organization.”
Derek Fox, President of the Critical Materials Components Division of The Elmet Group
“Schwabmünchen has a long history of technical excellence in tungsten and molybdenum manufacturing. I am happy that our great team from Schwabmünchen will become part of Elmet, an organization committed to carrying this legacy forward through its people and capabilities. Together with Elmet, the Schwabmünchen team will seek to build on this foundation, support our customers, and create new opportunities in the years ahead.”
Rainer Barthel, Managing Director of OSRAM GmbH
