Cogne acquires Mannesmann Stainless Tubes, eyes increased sales

Walsin Lihwa, the leading stainless steelmaker in Taiwan, has purchased 100% equity of Mannesmann Stainless Tubes GmbH (MST) from German steelmaker Salzgitter Group. The deal was done through Walsin Lihwa’s Italian subsidiary, Cogne Acciai Speciali (CAS), for €135 million ($146m).

The transaction is subject to regulatory approvals by authorities, Kallanish notes.

Walsin Lihua says: “The recent series of acquisitions not only build CAS’s unique position as a one-stop stainless steel and nickel-based alloy manufacturer in Europe, but also accelerate Walsin Lihua’s strategic layout of penetrating high-end and high-growth potential markets.”

“We are pursuing active portfolio management with strategic acquisitions and growth steps, as well as sales of companies that are not part of our defined development areas,” says Salzgitter chief financial officer Burkhard Becker. “This approach is an integral part of our Salzgitter 2023 strategy. Cogne provides MST and its employees further reaching entrepreneurial opportunities within the new network, and ranks as a renowned industrial partner.”

MST is a global seamless pipe manufacturer, specialising in high-end pipe that can withstand extreme pressures and temperatures. Its customers include companies in the oil and gas, aerospace, chemicals, new energy and other industries. It is not integrated into the Salzgitter Group’s supply of primary materials.

Cogne manufactures long products in stainless steel and nickel-based alloys for aerospace, automotive, energy – and in particular the oil and gas industry.

After the acquisition, Walsin Lihwa expects MST to expand market share, supported by stable raw material supplies from CAS, and thus expects CAS to fully utilise its melting capacity.

Kallanish Asia , Svetoslav Abrossimov Bulgaria