According to the local Italian press, Amato Stabiumi, CEO of Alfa Acciai - the Italian rebar producer which has a yearly production capacity of 2.5 million mt, has written a letter to his five main domestic competitors proposing the creation of a new company which would help all parties get through the current very difficult market situation.
Based on the proposal, six Italian rebar producers would be the owners of the new company; among these would be Alfa Acciai, Feralpi, Ferriera Valsabbia, Leali, Iro - all based in Brescia in the north of Italy - as well as Pittini Group, based in Udine, in the northeast of Italy.
The new enterprise would lease the plants of the companies in question and would manage all their business. It would constitute an historical partnership managing about 8 million mt per year of longs production, in particular rebar and wire rod.
It is not yet clear if this new company is being proposed with the short-term objective of getting the producers in question through the current difficult market situation, or if it could be the first step towards a giant steel merger in Italy.