Swiss firm Trasteel is set to begin leasing the coil processing facility of Magona in Piombino, Tuscany, previously owned by Liberty Steel, according to sources close to the matter.
The company has reportedly signed a lease agreement under which Magona’s operations are expected to resume in September, paving the way for Trasteel’s planned acquisition of the company.
“This is a positive turning point for Liberty Magona, for the Piombino steelmaking hub and, more broadly, for the Italian steel industry,” says minister of Enterprises and Made in Italy Adolfo Urso (MIMT) in a note obtained by Kallanish. “We will closely accompany this industrial process, in coordination with trade unions and local authorities, to consolidate the relaunch of the plant and safeguard jobs and production.”
The deal will ensure the site’s industrial continuity. Trasteel has already begun the technical and commercial work needed to restart the plant, with the aim of gradually reaching full utilisation of both equipment and workforce, MIMt continues.
Discussions with trade unions will open in the coming days to manage the transfer of all 500 employees.
According to an informed source, Magona’s operations will officially resume in September, though Trasteel will have the facility begin some work as early as next month, with output gradually ramping up to full capacity next year.
Trasteel is said to have offered €36 million ($41m) over eight months from the date of signing as a lease payment to be deducted from the purchase price.
It has reassured stakeholders that it will secure a buying option on 40,000 tonnes of hot rolled coil to keep Magona operational in the fourth quarter, and will purchase around 4,800t of HRC for re-rolling at the facility between end of June and July.
In a published note it confirms it is “fully focused on delivering this important project in Piombino, a strategic steel hub for the country”.
Trasteel was not available for comment to Kallanish before the press deadline.
Trasteel is buying Magona from the Greensill receiver after the collapse of the bank in 2021, which left Liberty on the brink of insolvency, with the firm battling to find new sources of financing to continue operations (see Kallanish passim).
