According to the local Italian press, Andrea Pittini, CEO of Udine-based rebar producer "Ferriere Nord" (Pittini Group), has answered "yes" to the proposal from Brescia-based rebar producer Alfa Acciai regarding the creation of a new six-partner joint venture company which would control 8 million mt per year of Italian long product output.
The proposal made by Alfa Acciai CEO Amato Stabiumi, sent by letter and also published in local papers on Monday, March 3, invited the participation of four local rebar producers all based in the Brescia district in northern Italy, namely, Feralpi, Ferriera Valsabbia, Leali and Iro.
Furthermore, the proposal was also sent by letter to Pittini Group, whose CEO is currently the only addressee to have issued a response. To date, the proposal has not included Stefana Spa (based in Brescia and a relative newcomer to the rebar market) and high-quality wire rod producer Ori Martin (also located in Brescia).
The joint venture proposal, currently supported only by Amato Stabiumi and Andrea Pittini, would be worth a total of 5 billion euro, a value equal to one third of the Italian steel market and to the half of domestic longs production. The new company would essentially give the six partners involved control of Italy's rebar and wire rod production.