Finnish ferroalloy producer Afarak Group is evaluating the potential acquisition of the facility of Italian long producer ABS Sisak in Croatia, Kallanish notes from a stock exchange release.
Discussions are being held with ABS, part of the Danieli Group’s steel division, with the aim of acquiring the plant to resume production and install a new rebar line with a capacity of approximately 500,000 tonnes/year.
“Today, Croatia imports nearly all of its construction steel—about 400,000t/ — so domestic production would directly reduce dependence on imports. The total value of the deal, including the installation of the mini mill developed by Danieli, a compact and energy-efficient production model that transforms ferrous scrap into rebar, wire rod, and bars for the construction industry, is in the order of €200 million [$228.9m],” the note states.
Afarak says no binding obligations exist between the parties at this stage. The release was issued in response to reporting by Croatian media, some of which the company describes as incorrect or inaccurate, Kallanish observes.
In 2024, ABS announced it would enhance its sales volumes by optimising production at both the ABS Sisak facility in Croatia and the newly developed wire rod and ore grinding ball rolling mills in Italy.
