Italian headquartered longs supplier Feralpi has announced that it is in the process of acquiring 50% of the shares Duferco Italia Holding has in the Caleotto wire rod mill in northern Italy, Kallanish notes.
The companies are awaiting clearance from the authorities to complete the transaction. Feralpi has been sharing control of the mill with Duferco for the last five years on a 50:50 basis. “Five years after forming the equal joint venture that led Feralpi and Duferco to taking over and relaunching the major rolling mill in Lecco, situated in the centre of a well-established drawing mill district devoted to export, the share structure will change,” Feralpi says.
Feralpi is looking to increase its control over Caleotto by continuing to focus on the special steel sector. Duferco, meanwhile, has lately been focussing on investment in new rolling lines for beams at its Brescia unit, and therefore targeting its resources in that area.
“The operational partnership between the two companies will not end,” Feralpi stresses. Billets for the mill will continue to be supplied by Acciaierie di Calvisano (Feralpi) and the Duferco Group.
Caleotto supplies special wire rod to a number of markets, including the automotive sector, currently undergoing a period of weakness in demand, Feralpi adds.