Cremona-based Italian steel producer Arvedi Group has stated it is interested in leasing Ferriera di Servola, the Trieste-based iron and coke producing unit of Italy's second-largest steelmaker Lucchini, and may subsequently buy the plant.
In a letter to Piero Nardi, the administrator in charge of Lucchini, Arvedi said it was particularly interested in the presence of a thermal power plant owned by a company called Elettra Produzione Srl, near the site of Lucchini Trieste e Servola SpA. It said it was interested in seeking commercial synergies between the production of pig iron and electricity. If the administrator gives the green light, the leasing contract with Arvedi will be signed, presumably for six months and then for a further 18 months.
As of July 1, according to a trade agreement which will continue in the month of August, all pig iron produced by the Trieste-based plant (about 25,000 mt per month) is being sold to Arvedi.
Lucchini was placed under "special administration" late last year after being declared insolvent, a procedure designed to save large companies and avoid big job losses.
Russian steel producer Severstal had acquired Lucchini, previously owned by the family of the same name, in 2005. 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.
