Vicenza, Italy-based Fonderia Corrà, specialized in gray and ductile cast iron production, has acquired Fonderie del Montello, an Italian foundry which went bankrupt in 2010 and was auctioned in recent weeks.
The transaction, the value of which amounts to €7.6 million, has saved the jobs of Fonderie del Montello's 130 employees and will allow Fonderia Corrà to expand its market.
Massimo Corrà, president of Fonderia Corrà, stated, "This acquisition responds to a clear company strategy and to its willingness to be even more aggressive in the highly competitive market environment. We are creating a strong integration between the technical-metallurgical know-how of the two plants, which are perfectly complementary to each other. Furthermore, Fonderie del Montello has a ductile cast iron production that is fairly unique in Europe."
The objective of Fonderia Corrà for 2011 is to reach an output of 15,000 mt, compared to 13,000 mt last year. In terms of turnover, 2010 ended with a total of €54 million, while for 2011 Fonderia Corrà expects to see 35 percent year-on-year growth.
Mr. Corrà went on to state, "With this synergy, we will expand our presence in the pig iron market and our range of products will be widened. Finally, we have obtained the optimization of our activities. All this responds to the current general trend that leads companies to increase their size in order to strengthen their competitiveness. We believe that made-in-Italy high quality products are of strategic importance for our business."