Lucchini announces the sale of Piombino to Cevital

ROME (Scrap Monster): The company was owned by a Russian firm Severestal, but was later stated to be insolvent in the year 2012, and was placed under special administration, after being shattered by the economic crisis, slowing demand and also the hard competition from Asia, between the period 2008 and 2009.

At the beginning of the bidding the company received two offers for its asset, one was from Cevital, and the other one was from JSW Steel. The company later explained that the offer from Cevital was more wholesome, when compared with that of JSW Steel, a company based in India. Most importantly, Cevital has promised full employment at Piombino, which makes the offer far better than the other one proposed. The Algerian based company plans to branch out the firm to agricultural business, logistic operations, food and also logistic operations.

The Piombino firm, employees about 2,000 people and also has the capacity to produce 2.5 million tonnes of steel every year. The Cevital Group involves itself in many numbers of industries and manufacturing business, like  manufacturing of glass, metal working as well as cement. The company also involves in mining industries, food processing industries and also distribution industry.