Marcegaglia acquires Italian mill

Italian re-roller Marcegaglia has completed the acquisition of local drawing mill Trafital S.p.A., Kallanish learns from the company.

Trafital, located near Varese, northern Italy, has an annual re-rolling capacity of about 22,000 tonnes of steel, a €35 million ($36m) turnover and a capillary presence throughout Italy.

“With this acquisition, the Marcegaglia Group expands its already vast production offer, adding a range of drawn products complementary to those currently processed in the Contino di Volta Mantovana plant,” Marcegaglia says. “The acquisition of Trafital is part of a more complex investment policy that the Group is implementing through diversified strategies that also includes niche operations such as this one and aims to create both commercial and technical-production synergies.”

Marcegaglia obtained this year a six-year credit facility of €1 billion from a pool of Italian and foreign banks. The credit facility includes €700m that will be used to refinance medium-term lines maturing between 2024 and 2026, €200m to support the company’s future investments and €100m in revolving credit. “The loan will support the new development plan of the Mantuan industrial group … promoting growth programmes and projects in the steel sector, including possible new acquisitions and alliances,” the company said in May (see Kallanish passim).

Marcegaglia is one of Europe’s largest re-rollers. Last year, it achieved a turnover of €7.7 billion and employs 6,600 workers. It re-rolls about 6.2 million tonnes/year of steel and has 29 re-rolling mills.

Natalia Capra France