German company ThyssenKrupp signed an agreement to sell the Acciai Speciali Terni (AST) plant in Italy and related sales structures in Germany, Italy and Turkey to the Italian metallurgical company Arvedi. According to experts, the value of this asset exceeds 400 million euros.
The transaction must be approved by the ThyssenKrupp supervisory board and the European competition authorities. Therefore, it is expected to close in the first half of 2022. According to the Reuters news agency, the German company may hold a minority stake.
The AST facility has a steel melting capacity of up to 1.3 million tons per year, approximately 70% of which is stainless steel. According to S&P Global Platts, citing a source in the business, approximately 1 million tons of stainless and carbon steel are planned to be produced this year.
Arvedi is Italy's second largest steel producer. It has two electric arc furnaces with annual capacities of 2.6 million and 1.4 million tons at its headquarters in Cremona.
The company also has two divisions for the production of stainless products, with about 15% of the rolled stock supplied by the AST plant. In particular, the Arinox plant produces annually up to 55 thousand tons of thin and ultra-thin stainless steel strips and Ilta Inox - up to 100 thousand tons of welded stainless pipes.
According to Arvedi, it will make significant investments in the business after the acquisition of AST, but the direction of these projects has not been disclosed yet.
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