Beltrame Group, largest European merchant bar producer acquired special steel producer Romania based Targoviste (COS) for Eur 33.3 million ($36.7 million ), the Italian company said March 17.
Beltrame is aiming to transform COS Targoviste to an important production unit and it has planned to invest in the next four years Eur100 million to revamp the mill and to invest further Eur40-50 million as working capital.
According to the statement, at the beginning, Targoviste will produce rebar, and as the modernization work and new workforce will be hired and training will progress, the company will produce again special steel, once the core of the company. “The acquisition of COS Targoviste is an important step in the group’s business expansion strategy of Beltrame in Romania and confirms our long-term commitment in Romania,” said Carlo Beltrame, Group Business Development of AFV Beltrame Group.
“We expect to start production in the existing steelworks and the two rolling mills in early June, to supply the domestic market with rebar and wire rod and stop the market’s dependence on imports, especially in the context of the conflict in Ukraine,” Beltrame said.
In Romania, Beltrame Group already owns a steel plant in Donalam that produces 160,000-180,000 mt of hot rolled steel bars and special steels, with uses in various industries, from oil and gas, automotive, large mechanical and hydraulic equipment, to agricultural machinery and equipment. Last year the company produced 159.000 mt of rebars and for this year Beltrame has forecast to produce 170.000 mt of bars.
According to COS Targoviste website the company went into a “judical reorganization” stopping activities in 2019. S&P Global Commdity Insights couldn’t get a comment from Beltrame press officer about this. According to the company’s website Targoviste is capable of casting 45,000 mt/month of billet.
— Annalisa Villa
