The search for a buyer for the Italian steelmaker Lucchini continues to be an urgent issue in the Italian steel industry. Domestic pressure is increasing on the Italian government to do everything possible to find a buyer quickly.
Two months from the green light given by the Court of Milan for the restructuring of Lucchini's debt, a new board of directors has not been appointed yet, and this causes additional problems for the company, especially in the context of the current difficult economic period.
According to recent reports, a delegation from the Indian steelmaker Jindal Steel & Power Limited (JSPL), the third largest steel company in India, has paid a visit to Lucchini's Piombino plant. JSPL would be considering the possibility of acquiring the Italian steel mill, but there is no news of an official offer yet. For Lucchini, JSPL would be an excellent partner, responding to its need to remain in a large expanding group which is able to make significant investments, controls raw material supplies and is interested in entering the European market.
As stated in a recent meeting between the local government and labor unions, the prospective buyer would be able to avail of space which had been set aside at Piombino by previous owner Russian steelmaker Severstal for the construction of an electric arc furnace facility. In addition, with the proximity of ArcelorMittal Magona, profitable synergies for both companies could be established.