The Italian re-roller subsidiary of Ukrainian steelmaker Metinvest has signed its first facility with Italy’s Cassa Depositi e Prestiti S.p.A (CDP) for €15 million ($17m), Kallanish learns from Metinvest.
The six-year term loan facility, with a two-year grace period, is being issued under an Italian government programme guaranteed by SACE S.p.A., the state-owned export credit agency. This comes under the “Garanzia Italia” initiative to support companies through the international health crisis.
The proceeds will be used to implement the capital expenditure programme at Metinvest Trametal. This represents the debut term loan for Metinvest Trametal’s business development since the Ukrainian group acquired the asset in 2008, the company says in a note.
“Such financing will help enhance Metinvest Trametal’s product quality, production volumes and business efficiency,” says Metinvest chief executive Yuriy Ryzhenkov. “In turn, this will ensure the Group’s continued ability to meet customers’ needs while improving its financial and operational performance.”
Metinvest Trametal is located in San Giorgio di Nogaro, north-eastern Italy. Its quarto reversing rolling mill has an annual production capacity of 600,000 tonnes of high-quality, hot-rolled plate for use in shipbuilding, pipe manufacturing and for other industrial purposes. The Italian subsidiary – comprising around 300 employees – is primarily fed by Metinvest slab produced in Ukraine.
The Italian government approved the €200 billion “Decreto Liquidità” in April. This is a state emergency support programme under which CDP and other financial institutions and banks offer Italian companies capital financing guaranteed by SACE. The programme provides businesses with medium and long-term financing to support investments and activities in Italy following the Covid-19 pandemic.