JSW Steel to Sell Italian Steel Assets

SEATTLE (Scrap Monster): JSW Steel announced its decision to sell its Italian businesses, following failure of attempts by the company to revive them. The businesses have been under pressure due to rising raw material costs and geo-political tensions. JSW Steel had purchased these assets in 2018.

As part of its expansion plans, JSW Steel had acquired 100% stake in Aferpi SpA and Piombino Logistics SpA and 69.27% stake in GSI Lucchini SpA for a total of $64.7 million. The assets were acquired from Cevitaly Srl, a wholly-owned unit of Algeria’s Cevital SpA on a cash- and debt-free basis. It must be noted that Cevitaly had acquired these assets from Italian steelmaker Lucchini in 2014.

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Announcing the decision, Sajjan Jindal, Chairman and MD, JSW Group said that the sale of the businesses is expected to result in some loss for the company, but it is not expected to be a big deal. The group had made huge investments to revive the company, but in vain. The ongoing Russia-Ukraine crisis has added to the woes, he noted.

All the three companies are located at Piombino in Italy’s Tuscany province. JSW Steel had acquired these assets in line with its strategy to expand its European footprints, supplying long steel products to the European market.