Cogne Acciai Speciali acquires a controlling stake in a scrap supplier

Italian stainless steel producer Cogne Acciai Speciali, a subsidiary of Taiwan’s Walsin Lihwa, has agreed to acquire 65% of one of its main scrap suppliers, Com.Steel Inox. The deal is expected to close in the coming months, Gazzetta Matin reports.

The deal is subject to regulatory approvals and will be completed as a share purchase.

«The acquisition of a majority stake in our main stainless steel scrap supplier is the first step in a verticalization strategy that will guarantee the cyclicality of our operations, including through optimization of the composition of the charge, reduction of ferroalloys and the associated improvement in the carbon footprint,» said Massimiliano Burelli, CEO of Cogne Acciai Speciali.

He added that Com.Steel Inox will continue to be an independent company with ambitions to operate and grow in the domestic and international markets.

As GMK Center reported earlier, global stainless steel production in January-September 2023 increased by 2.5% compared to the same period in 2022 – to 42.6 million tons. During this period, Europe, including Ukraine, reduced its stainless steel production by 8% compared to January-September 2022 – to 4.41 million tons, according to the non-profit organization International Stainless Steel Forum.

In the third quarter, global stainless steel production amounted to 14.73 million tons, up 2.2% quarter-on-quarter. Europe produced 1.27 million tons (-14.98% q/q).