Italy's leading financial newspaper Il Sole 24 Ore has reported details about a recent investment by Italy-based Marcegaglia Group in a new stainless pipe and flat steel service center in Vladimir, Russia (180 km east of Moscow).
The new establishment will produce about 35,000 mt of steel per year, with an expected turnover of €130 million, which will help to raise the share of the group's foreign revenues from 10 percent to 20 percent.
The expenses incurred by Marcegaglia will be about €50 million, of which €30 million for fixed assets. The activity will occupy four different buildings: one for the production department and three for logistics. Equipment will include a cutter, two TIG welding lines, two laser welding lines, two high frequency welding lines and plants for smoothing and brushing of flat steel. Flat steel will be sold cut-to-length as well.
The products produced by the Vladimir plant are intended for the automotive and for the food industries. Management of the plant has been assigned to a new company Marcegaglia Ru, subsidiary of Marcegaglia (65 percent) and Russian group Vender (35 percent). In an interview with Il Sole 24 Ore, Marcegaglia Group's managing director Antonio Marcegaglia said that by the end of this year the company will have a presence in India, the only BRIC country where it does not have a presence currently, with a commercial subsidiary that could serve as a bridgehead for the creation of a production site.