Algerian food processor Cevital has filed a binding bid to acquire Lucchini's steelmaking plant in Piombino in Italy's Tuscany region, as announced by Lucchini on October 20. Lucchini added that special commissioner for Lucchini, Piero Nardi, will soon start to analyze Cevital's offer, but also bearing in mind the advanced situation with regard to the proposal made by Indian steelmaker JSW Steel.
The Algerian group had recently stated that it plans to invest more than €300 million in the construction of a logistics platform and an agro-industrial production complex for the various activities of the company in the Mediterranean area. The group's CEO Issad Rebrab had said the company's aim is to "resume steel production in Piombino up to two million mt of special and standard steel products, with the installation of two furnaces to replace the current blast furnace and the general revamping of the cold processing area".
Meanwhile, at the beginning of last week Italy's Ministry of Economic Development had asked Lucchini to seek more details from JSW Steel and to ask it to improve its offer of less than $100 million for the Italian company's core assets in Piombino.
Last Friday, October 17, JSW Steel officials, in a meeting with the president of the Tuscany region, said the company will improve its offer. Accordingly, a new bid by JSW Steel is expected to be presented soon to special commissioner Nardi. JSW Steel said that its next offer will contain precise references to the construction of an electric furnace.
In late 2012, after being declared insolvent Lucchini was placed under "special administration", a procedure designed to save large companies and avoid big job losses. In 2005, Russian steel producer Severstal had acquired Lucchini, previously owned by the family of the same name. Severstal has since sold a majority stake to its owner, Russian businessman Alexei Mordashov, to facilitate the sale of Lucchini. The disposal of the troubled Italian steelmaker has proven very difficult in the context of falling steel prices and difficult economic conditions.
