JSW Steel Reaches Deal to Acquire Italian Long Products Facility
05/18/2018 - JSW Steel has locked up a deal to acquire Italy’s struggling Aferpi long products mill from the Cevital Group, according to reports.
According to The Hindu Business Line newspaper, the deal is worth the equivalent of around US$88.3 million and will help JSW Steel broaden its reach into the European special bar quality market, especially in the automobile sector. Aferpi makes bar, rail and wire rod.
The sales comes after the Italian government last year decided to seek alternative ownership for the mill. The Algerian Cevital Group bought the mill from the government in 2014 on the condition that it invest in the plant and relaunch steel production. However, the company struggled to meet the agreement, and the government put the mill back on the sales block.
Kallanish Commodities reported that JSW plans to immediately restart the plant’s three rolling mills using blooms and billets sourced from its Indian plants. The company also plans to build a hot strip mill there, it said.
The sales comes after the Italian government last year decided to seek alternative ownership for the mill. The Algerian Cevital Group bought the mill from the government in 2014 on the condition that it invest in the plant and relaunch steel production. However, the company struggled to meet the agreement, and the government put the mill back on the sales block.
Kallanish Commodities reported that JSW plans to immediately restart the plant’s three rolling mills using blooms and billets sourced from its Indian plants. The company also plans to build a hot strip mill there, it said.
