In a bold move that signals its ambitious growth plans, Cogne Acciai Speciali, a prominent Italian stainless long steel producer, has greenlit a substantial capital increase of €45 million. This strategic financial decision is primarily aimed at facilitating the acquisition of Mannesmann Stainless Tubes from Salzgitter, a move that is set to significantly enhance Cogne's market position in the special steel industry.
The capital increase represents a pivotal moment for Cogne, as it seeks to strengthen its foothold in the global market and expand its portfolio. This financial maneuver is not just about acquiring assets; it's a clear statement of Cogne's intent to become a major player in the special steel sector. The company's management views this as a crucial step in meeting the growing demand from key industries such as aerospace, nuclear, medical, and energy sectors.
Cogne's acquisition strategy doesn't stop with Mannesmann Stainless Tubes. The company has been on an aggressive expansion spree, recently acquiring ComSteel Inox, its primary supplier of stainless steel scrap. Additionally, Cogne has purchased a portion of Outokumpu's long products business located in Degerfors and Storfors, Sweden. These acquisitions are part of a broader plan to diversify Cogne's product offerings and strengthen its supply chain.
The Italian steelmaker is not just focusing on acquisitions but is also investing heavily in modernizing its existing facilities. A prime example of this is the ongoing upgrade at its Aosta plant in Italy. The company is revamping the cooling chamber of the continuous casting machine for special steel blooms, a project that was undertaken during this year's four-week summer shutdown. This modernization effort underscores Cogne's commitment to improving operational efficiency and product quality.
Cogne's ambitious expansion plans have been fueled by its acquisition by Walsin Lihwa, a move that has injected new life and resources into the company. Since coming under Walsin Lihwa's ownership, Cogne has embarked on a series of strategic mergers and acquisitions. A notable example is the completion of the acquisition of Sheffield-headquartered Special Melted Products last year, further expanding Cogne's reach and capabilities.
The support from Walsin Lihwa has been substantial, with the parent company committing to invest over €110 million in Cogne's Aosta plant between 2022 and 2024. This significant investment is a clear indication of Walsin Lihwa's confidence in Cogne's potential and its commitment to the company's growth strategy. The overarching goal is to gain market share in Europe and Asia while developing a stronger presence in the United States.
