Italian government approves sale of Piombino complex to Cevital

On December 2, the Italian ministry of economic development announced that it has authorized the sale of the the Lucchini steel complex in Piombino, Tuscany to Algerian food-processing company Cevital. The transaction will entail an investment of about €400 million. Cevital will immediately rehire 1,860 workers.
 
A ministry statement noted that Cevital is part of an industrial group that operates in sectors such as food and agriculture, car manufacturing, glass products and retail. The acquisition of Lucchini is part of the group's plan for international growth, which aims to develop investment in activities with a potential market in Algeria. Cevital's plan for Piombino includes the construction of a fourth rolling mill, as well as the construction of two electric furnaces (the first within 18 months, the second within two years) in order to resume full-cycle production.
 
"We made a commitment and we kept it," said Italian prime minister Matteo Renzi during a meeting in Algiers with Algerian president Abdelaziz Bouteflika and with Algerian prime minister Ahmed Ouyahia. He went on to say, "The proposal of the Algerian group Cevital for the acquisition of the steel group Lucchini of Piombino is an important proposal for the future of the steel industry and it marks a great step forward in relations between Italy and Algeria. We are ready to welcome Algerian investors to Italy. Since my government took office, this is the fourth time that one of our representatives has come to Algiers. This testifies to the very important and strategic relationship between Italy and Algeria."
 
Meanwhile, on Monday, December 1, Indian steelmaker JSW Steel said that it has ended its interest in the purchase of the Piombino complex in order to focus on its Indian businesses.