Arvedi subsidiary acquires Lucchini plant in Trieste

Siderurgica Triestina, a company 100 percent-controlled by Italian steelmaker Arvedi Group, has completed the purchase of Italian steel producer Lucchini's Trieste-based pig iron unit Ferriera di Servola, Lucchini announced on October 6.
 
Accordingly, Arvedi will undertake investments for the redevelopment of industrial and port activities and for environmental recovery at the industrial complex in Trieste. These operations, as stated by the Italian Ministry of Economic Development, will result in investments totaling €172 million between 2014 and 2016.
 
Founded in 1963, Cremona-based Arvedi Group is active in the manufacture of black, pickled and galvanized hot rolled coils, carbon and stainless steel tubes, and re-rolled stainless steel precision strip, and in the marketing of steel products.
 
Meanwhile, for its Lecco-based plant Lucchini has extended a deadline to steel producers Duferco and Feralpi to present an improved binding offer by October 15. The initial offer made jointly by Duferco and Feralpi in August was judged unsatisfactory.
 
In late 2012, after being declared insolvent Lucchini was placed under special administration - a procedure designed to save large companies and avoid big job losses. Russian steel producer Severstal had acquired Lucchini, previously owned by the family of the same name, in 2005. Severstal subsequently sold a majority stake to its owner, Russian businessman Alexei Mordashov, to facilitate the sale of Lucchini. The disposal of the troubled Italian steelmaker has proven very difficult in the context of falling steel prices and difficult economic conditions.