AFV Beltrame Group aims to transform the COS Targoviste plant into a European competitive special steel production unit, it said in a press release.
Over the next four years Beltrame plans to invest 100 million euro in modernising the steelshop and rolling mills at COS Targoviste, and
a further 40-50 million euro in providing working capital.
"The acquisition of COS Targoviste is an important step in the Beltrame Group's expansion strategy in Romania and confirms our long-term commitment to the development of the local steel sector. COS Targoviste has a strong history in the steel industry, so we are honoured to have the opportunity to revitalise this steel giant," AFV Beltrame country manager for Romania and France Carlo Beltrame said.
"We expect to start production in the existing steelworks and the two rolling mills in early June, in order to supply the internal market with rebar and wire rod and stop the market's dependence on imports, especially in the context of the conflict in Ukraine," he added.
At first, COS Targoviste will produce rebar, and as the modernisation work and workforce training progresses, it will return to the production of special steels for which it was originally built.
The reopening of the production plant will create about 450-500 new jobs in the near future, with the aim of increasing capacity to about 1,000 new jobs in the coming years. At present, about 70 employees are working at COS Targoviste, mainly to keep utilities up and running and maintain equipment.
Beltrame Group is present in Romania through Donalam, which was established in 2007, following Beltrame's acquisition of the Siderca hot rolling mill in Calarasi. Donalam ended 2021 with a turnover of 118 million euro, up by an annual 90%, and a sales volume of around 159,000 tonnes of steel bars. Donalam estimates a turnover of over 160 million euro in 2022 and a sales volume of around 170,000 tonnes of steel bars. It currently employs more than 340 people.
Beltrame was founded in 1896 and manufactures steel products for use in construction, shipbuilding and excavation, with commercial activities in over 40 countries. It operates six plants in Italy, France, Switzerland and Romania, which employ a total 2,200 and manufacture 2 million tonnes of steel produced annually.
In July, Beltrame said that it plans to build a rebar and wire rod plant in Romania - an investment project worth an estimated 300 million euro. The new production plant will include a greenfield steel and rolling mill and a 100 MW solar park, Beltrame said at the time.
