JSW Steel buys Aferpi

28th May 2018

JSW Steel on Friday inked a pact with Algeria’s Cevital to buy its Italian arm Aferpi for around Rs 441 crore.

The Sajjan Jindal-owned firm had earlier tried to acquire the second largest plant in Italy in 2014, when it was known as Lucchini. The Algerian conglomerate Cevital, however, acquired Lucchini and renamed it Acciaierie e Ferriere di Piombino (Aferpi).

“JSW Steel has signed a deal with Cevital to buy Italy’s second largest steel firm Aferpi for around Rs 441 crore on Friday,” the source said.

Senior JSW officials are reported to be in Italy and the pact was signed at Italy’s ministry of economic development.

While JSW Steel refused to comment on the development, an email query sent to Cevital remained unanswered.

The acquisition will help JSW to expand its reach in the specialised steel market, particularly in the auto sector.

Aferpi makes a wide range of quality and special steel for rails, wire rods and bars for railway, automotive, earthmoving vehicles, energy, fastening, springs and welding.

At present, it is working on projects that involve production of 1 million tonnes (mt) of long steel products and revamping of wire rod and bar mills, installation of a 1mt electric arc furnace.

Source: THE TELEGRAPH