JSW Steel signs pact to buy Aferpi for ₹600 cr from Algeria’s Cevital

JSW Steel on Friday inked a pact with Algeria’s Cevital to buy its Italian arm Aferpi for around ₹600 crore, a source in the know of the development said on Friday.

The Sajjan Jindal-owned firm had earlier tried to acquire the second largest plant in Italy in 2014, when it was known as Lucchini. The Algerian conglomerate Cevital however acquired Lucchini and renamed it Acciaierie e Ferriere di Piombino (Aferpi).

“JSW Steel has signed a deal with Algeria’s Cevital to buy Italy’s second largest steel firm Aferpi for around ₹600 crore on Friday,” the source who did not wish to be quoted said.

According to the source, senior officials of JSW are in Italy and the agreement document was signed at Italy’s ministry of economic development.

The acquisition will help JSW to expand its reach in the specialised steel market, particularly in the automobile sector. Aferpi makes a wide range of quality and special steel for rails, wire rods and bars for railway, automotive, earthmoving vehicles, energy, fastening, springs and welding.

At present, it is working on projects that involve production of 1 million tonne (MT) of long steel products and revamping of wire rod and bar mills, installation of one electric arc furnace of 1 MT capacity with two continuous casting machines.

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