The EU's antitrust authority, the European Commission, has given its final approval for the acquisition of the Lecco-based
wire rod mill branch of Lucchini SpA by Caleotto Spa, the new 50-50 joint venture established by
Duferco Italia Holding and
Feralpi Siderurgica Spa, after deciding that the deal would not adversely affect competition. The transaction was announced on March 18 this year.
According to the industrial plan for the new company, all existing 74 jobs at the plant will be preserved. As feedstock, the plant will use billet produced by
Duferco and
Feralpi respectively at their San Zeno Naviglio and Calvisano mills, both located in the province of Brescia. The goal is to reach an annual output of 300,000 mt of
wire rod by 2019, starting from 73,000 mt in 2015.
Duferco and
Feralpi will pay in excess of €20 million for the acquisition of the Lecco-based plant.
Investments in the facility in the 2015-2019 period will exceed €5 million and will be focused on the modernization of the plant, adjustments of facilities on the technical and production side, efficiency improvements, and setting high standards of quality, safety and environmental protection, according to a statement issued by Caleotto.
The two CEOs of the JV company will be Giovanni Bajetti who will look after the commercial side and Lorenzo Angelini who will be responsible for production operations.