The closing of the deal is expected in the coming months
Italian stainless steel producer Cogne Acciai Speciali, a subsidiary of Taiwan's Walsin Lihwa, has agreed to acquire 65% of one of its main scrap suppliers, Com.Steel Inox. The deal is expected to close in the coming months, Gazzetta Matin reports .
The deal is subject to regulatory approvals and will be completed as a share purchase.
«The acquisition of a majority stake in our main supplier of stainless steel scrap is the first step in a verticalization strategy that will guarantee the cyclicality of our operations, namely through the optimization of the load composition, the reduction of ferroalloys and the associated improvement in carbon footprint”, said Massimiliano Burelli, CEO of Cogne Acciai Speciali.
He added that Com.Steel Inox will continue to be an independent company with ambitions to operate and grow in national and international markets.
As previously reported by us, global stainless steel production between January and September 2023 increased by 2.5% compared to the same period in 2022 – to 42.6 million tonnes. During this period, Europe, including Ukraine, reduced its stainless steel production by 8% compared to January-September 2022 – to 4.41 million tonnes, according to the non-profit organization International Steel Forum Stainless.
In the third quarter, global stainless steel production totaled 14.73 million tons, an increase of 2.2% compared to the previous quarter. Europe produced 1.27 million tons (-14.98% t/t).
