Although the COVID-19 has impacted the global steel market, the major Italian steel producers Marcelli and Avidi are still considering further expansion. It is reported that both companies are interested in acquiring Acciai Speciali Terni (AST), a stainless steel producer based in Terni, Italy. On May 20, ThyssenKrupp's group restructuring plan, intends to cooperate with other companies or sell AST.
AST is an old factory with a history of more than 130 years. It uses the electric arc furnace process to produce about 1 million tons of stainless steel sheets per year. In addition, its Tubificio division produces welded stainless steel pipes, and the forging division produces special steel forgings with larger specifications. Its production facilities are concentrated in Terni, Italy.
Italy's Minister of Economic Development Stefano Patuaneri confirmed that both Machigalli and Avide are interested in acquiring AST. Given the poor performance of foreign investors, the government tends to involve local Italian companies or the government in this transaction.
It is reported that as early as September 2018, when ThyssenKrupp planned to divest AST assets, Marcegaglia had considered acquiring the company. Marcegaglia has an advantageous position in the field of stainless steel pipes, and AST is its main raw material supplier. The acquisition of AST will bring a series of synergies. The special steel division of Marcegaglia produces 500,000 tons of stainless steel products per year. Avidi's subsidiary ILTA Inox produces stainless steel welded pipes with a diameter of 10-1000 mm and a thickness of up to 8 mm, requiring hot-rolled and cold-rolled stainless steel coils as raw materials.
![ThyssenKrupp may sell Italy's 130-year old stainless steel factory]()