Arvedi to invest $226m in Lucchini’s Trieste plant

Italian steel group Arvedi will invest €172 million ($226 million) in the Ferriera di Servola steel plant in Trieste when its purchase of the Lucchini plant is complete, trade union sources told Steel First on Monday September 1.

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A total €172 million ($226 million) of private investments put forward by Arvedi will be accompanied by funding from the Italian government worth about €42 million ($55 million), according to a plan presented by Arvedi to unions at Italy’s ministry for economic development in Rome last week.

The meeting was one of the final steps towards Arvedi’s acquisition of the plant. Insolvent Italian steel group Lucchini’s assets were put up for sale by the Italian government in 2010.

Italy gave the go ahead for Arvedi’s purchase of the Ferriera di Servola plant earlier this month. The deal is considered by market sources to be in its final stage, but no information has been released on its value.

The Arvedi investment is expected cover the restructuring of the plant, including the construction of a new cold rolling mill in one of the plant’s existing buildings.

The disclosure of Arvedi’a intended investment in the plant is the latest on a series of details to emerge about the deal.

Last week, trade unions told Steel First the plant’s blast furnace would be restarted as soon as the deal completes, with pig iron production expected to resume by October.

Arvedi declined to comment on its investment plans.