Kocaeli, Turkey-based Celik Halat ve Tel Sanayii AS has announced that it has signed an agreement with an Italian joint venture to acquire the Lecco, Italy-based stainless steel wire and alloy wire producer Trafileria Del Lario S.P.A. (TDL) for €7.5 million.
According to the agreement, TDL will file for financial protection at a district court in order for its debts to be consolidated. TDL and Celik Halat have signed a three-year plant leasing protocol for €240,000 which will enable TDL to continue production until the agreement and the financial protection are concluded. The leasing cost will be subtracted from the €7.5 million acquisation payment.
According to Celik Halat's statement, in 2013 TDL gradually reduced its capacity utilization to 25 percent due to financial difficulities. In 2011, TDL's total sales volume amounted to 11,553 mt, 50 percent of which was sold in Italy, 42 percent to other EU countries and eight percent to non-EU countries. In addition, TDL purchases 70 percent of its raw material from Europe and 30 percent from Asia.