The producer of bars from steel and special steel in Europe, AFV Beltrame Group, will start this year, in southern Targoviste, the construction of a new eco-smart factory for the production of steel in concrete or reinforced concrete and laminated wire, estimated at approximately EUR 300 million, and will invest approximately EUR 100 million in the next years in the modernization of the equipment in the Special Steel Plant (COS) in Targoviste.
According to a press release issued by the company on Tuesday to AGERPRES, the group received the authorization of the Competition Council to take over the functional production assets of COS Targoviste, the value of the transaction amounting to EUR 38.3 million plus VAT, but in order to complete the transaction, it is necessary to fulfill additional conditions that are related to the insolvency procedure and to obtain the necessary authorizations from the competent authorities, Agerpres.ro informs.
Present on the Romanian steel market since 2007, where it owns the rolling mill in southeastern Calarasi through the Donalam subsidiary, AFV Beltrame Group wants to expand its activity in Romania by acquiring and reopening the steel production unit owned by COS Targoviste SA, a company currently in judicial reorganization, pending the resolution of the appeal to the decision of the Court of bankruptcy declaration.
Beltrame Group aims to transform Targoviste plant into a special steel production unit competitive at European level.
Thus, in the next 4 years, approximately EUR 100 million will be invested in the modernization of the equipment, respectively the steelworks and the rolling mills, as well as about EUR 40-50 million in ensuring the working capital. For the beginning, about 450-500 jobs will be created, and then about 1,000 new jobs will be reached. Currently, about 90 employees work within COS Targoviste, mainly for the maintenance of the utility networks and the preservation of the equipment.
The Special Steel Plant in Targoviste was founded in 1970, initially producing allied and highly allied steels for the civil and defense industries. Starting with 1975 it started to produce special steels, used in the construction of Cernavoda nuclear power plant. Since 1998 the company has been listed on the Bucharest Stock Exchange - stock exchange symbol COS. In 2002 the majority stake was acquired by Conares Trading A.G. Switzerland, which later became Mechel International Holding GmbH, and since 2013 the company is in insolvency proceedings. In recent years, COS was the only full-cycle producer of steel in concrete in Romania (from raw material scrap metal, to steel-concrete, finished product) and one of the main producers of rubber and steel products.
The Beltrame Group owns in Romania the Donalam steel plant in Calarasi, specialized in the production of specially hot-rolled steel bars, with uses in various industries, from oil and gas, automotive, large mechanical and hydraulic equipment, to cars and agricultural equipment. With over 340 employees in Calarasi, Donalam estimates a business figure of over RON 630 million in 2021 and a sales volume of approximately 160,000 tons of steel bars.
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