The Bank of Algeria has given Algeria-based group Cevital its authorization to invest in Italy. With total revenues of $3 billion and a net profit of about $500 million, the group led by Issad Rebrab may finance an investment plan that could reach up to a maximum of €1.5 billion.
In addition to the steelworks formerly owned by Lucchini in Italy, Cevital, which is active both domestically and abroad, acquired French companies Oxxo and Fagor Brandt in 2013 and 2014.
The approval of the Bank of Algeria concerns mainly the financing of investments in the recently-acquired steel complex in Italy, as it is considered as an extension of the group's activities. Cevital is the first private Algerian group to be allowed to invest abroad after a little more than two months since the entry into force of new regulations of the Bank of Algeria.
Meanwhile, yesterday, January 27, representatives of the Algerian group once again met with representatives of the workers of the former Lucchini complex. Cevital provided details on the operations to be carried out in Phase 1 of the plan to relaunch the Italian steel facilities, which should start in April and be completed by the end of this year. The goal of the Algerian group is the restoration of hot production with an output of two million metric tons of finished products per year. One of the first measures to be implemented is the purchase of a heating furnace. Cevital also intends to complete and revamp a wire rod mill, to bring it to a production of 600,000 tons. In a second phase (still to be detailed), two electric ovens will be installed. The representatives of the Algerian group also specified that the production of rails is considered a priority. In order of importance, in the production mix, the second position is held by special steels: all other 'ordinary' steel products are considered a complement to reach 100 percent of mills' production capacities.
Cevital and workers representatives will meet again in a month’s time to start talking concretely about personnel and work organization department by department.