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Arvedi Invests in Tube Production in Brazil
12/28/2012 - The Arvedi Group has started production in South America. At the end of July, the new Arvedi Metalfer do Brasil works produced the first steel tube with the Arvedi label.
The Arvedi Group has started production in South America. At the end of July, the new Arvedi Metalfer do Brasil works produced the first steel tube with the Arvedi label. Industrial production destined for the Brazilian market started in October.
The new and modern plant — highly advanced in regards to environmental sustainability, production and technological efficiency — was built in Salto, about 100 km from Sao Paolo, on an area of over 300,000 m2. It produces welded steel tubes for special applications and cold drawn tubes for use in the automotive sector (mainly for making shock absorbers and Cardan shafts) and the fluid mechanics sector (cylinders).
The overall investment by the Group amounts to €60 million, with part of the quity (€41 million) financed by the Group and by Simest, the mixed public-private merchant bank which supports the development of Italian firms throughout the world. The Venture Capital Public Fund invested €9 million to obtain a 22% share in the venture.
“Thanks to this investment,” Giovanni Arvedi, president of the Arvedi Group, pointed out, “we will be able to provide high-quality products to customers we already serve in Europe and who are the most important players in the automotive and fluid mechanics sectors. This is also thanks to the technological know-how and professional and production skills experimented and consolidated over the years at Arvedi Tubi Accialo and Metalfer, outstanding companies in their sector.
“Moreover, we very much believe in Brazil because it represents a market with fast and steady sustainable growth. We hope that the Brazilian investment represents only a first, though very important, phase in our South America project.”
“Our shareholding in this important venture allows us to support the development of this important Italian group in a market such as Brazil’s, which represents an important outlet for the company’s production,” commented Massimo D’Aituo, managing director of Simest.
“Simest, in fact, has already supported a number of companies in Brazil, both through shareholdings and loans for export credit and commercial development. We have 68 shareholding projects for an overall investment of over €1 billion, with Simest and the Venture Capital Fund committed in the risk capital for €168 million.”
The Arvedi Group, founded by Giovanni Arvedi in 1963 and now controlled by the holding company Finarvedi SpA, operates in the steel sector with primary steelmaking and steel processing activities (hot rolled, pickled, and galvanized coils; carbon and stainless steel tubes; precision-rolled stainless steel strip) and more generally in the marketing of steel products. With more than 2,500 employees, a volume of about 3.2 million tonnes of manufactured and processed steel and a consolidated turnover which in 2011 reached €2.34 billion, the group represents one of the most important steelmaking companies at the European level.
