After more than two months of negotiations, on May 17 Indian steel producer Jindal South West (JSW Steel) signed the official agreement for the acquisition of Italian steelmaker Aferpi (formerly Lucchini) based in Piombino, Tuscany, from Algerian group Cevital for a consideration of €55 million, which increases to €90 million taking into account the trade working capital.
Italian economic development minister Carlo Calenda and Tuscany region president Enrico Rossi expressed satisfaction for the positive conclusion of an issue that put at risk one of the most important Italian steel facilities and the work of 1,950 people.
According to media reports, the agreement, aimed at allowing the relaunch of steel production in the Piombino area, should include a 50-year port concession. It should also include a reduction in energy costs and a solution for the environmental remediation of the site. It is now expected that JSW will present its industrial plan for the site in the coming weeks.
Aferpi produces long steel products of high quality and special steels, destined for sectors including railway, automotive, earth-moving vehicles, energy, fastening, springs and welding.
Aferpi has been experiencing difficulties since it was created by Algerian group Cevital after it bought the Piombino facilities from Italian steelmaker Lucchini in 2014. JSW had tried to acquire the facilities at the time, but Cevital, owned by enterpreneur Issad Rebrab, was successful in the bidding race and subsequently renamed the complex Acciaierie e Ferriere di Piombino (Aferpi).