Algerian group Cevital also expresses interest in buying Lucchini

Algerian food manufacturer Cevital has indicated that it is targeting the acquisition and relaunch of Piombino, Tuscany-based Italian steel group Lucchini. The Algerian group has said it plans to invest more than €300 million in the construction of a logistics platform and an agro-industrial production complex for the various activities of the company in the Mediterranean area. The company's aim is to "to resume steel production in Piombino up to two million mt of special and standard steel products, with the installation of two furnaces to replace the current blast furnace which has been idle for months and the general revamping of the cold processing area," said Issad Rebrab, CEO of the Algerian group in a press release. No formal offers have been finalized, but Cevital has pledged to submit a detailed business plan to the special commissioner for Lucchini.
 
Italian deputy minister for economic development Claudio De Vincenti stated, "It is positive that the steelworks area of Piombino is drawing so much interest. Obviously, any takeover bid must meet the requirements of a solid industrial plan and an adequate financial basis."
 
The news of Cevital's interest in Lucchini's facilities has been welcomed both by the Italian deputy minister for economic development and by the regional authorities in Tuscany. However, negotiations with Indian steel group JSW Steel for the purchase of Lucchini's facilities are still continuing and may move towards their final stage in the next few days.