Van Merksteijn and Badische Stahlwerke to Combine Forces, Forming Reinforcing Steel Europe
In a groundbreaking move set to reshape the European steel market, Dutch steel producer Van Merksteijn and German company Badische Stahlwerke are planning to merge their rebar operations in 2025. The two companies, which have been long-established leaders in reinforcing steel production and processing, recently announced their intention to create a joint holding company called Reinforcing Steel Europe B.V. The new entity will be headquartered in Almelo, the Netherlands.
The companies revealed their merger plans to customers through a joint letter, stating that the merger is currently undergoing review by antitrust and market authorities. Pending approval, they aim to officially form Reinforcing Steel Europe by the spring of 2025.
Strategic Objectives Behind the Merger
The merger of Van Merksteijn and BSW is driven by the desire to address numerous challenges faced by the rebar sector in recent years. These challenges include the impacts of the COVID-19 pandemic, evolving environmental regulations, shortages of raw materials, and the volatility of energy prices. By joining forces, both companies hope to bolster their competitive positions and solidify their market share as leading rebar producers in the European Union.
With a combined geographical footprint across Europe, Reinforcing Steel Europe aims to enhance its proximity to customers, which is expected to offer greater efficiency and reliability in delivery. For Van Merksteijn, the merger will help secure a steady supply of wire rod to meet the demands of its processing plants. Meanwhile, Südwest Beteiligungen, the parent company of BSW, will be able to better utilize the capacities of its steel mills located in Kehl and Trier, leading to improved operational efficiency.
Overview of the Companies Involved
Van Merksteijn is one of Europe’s top wire rod processors in the rebar sector, with additional production sites in Belgium and France. The family-owned business employs approximately 725 people and posted a turnover of €620 million in 2023. Van Merksteijn is known for its robust position in the European steel market and its focus on quality and service.
On the other hand, Badische Stahlwerke, a subsidiary of Südwest Beteiligungen GmbH, specializes in producing, processing, and distributing reinforcing steel and related products for the construction industry across Europe. With around 1,800 employees, BSW generated sales of approximately €1.2 billion in 2023. BSW’s operations are known for their extensive reach, especially in the processing and distribution of rebar, serving various construction and industrial markets.
Market Implications and Future Outlook
The establishment of Reinforcing Steel Europe is expected to provide both Van Merksteijn and BSW with a more secure and diversified supply chain, particularly in the face of raw material constraints and fluctuating energy costs. Moreover, the merger will allow the companies to better respond to the growing demand for high-quality steel products in the European construction sector.
By combining their strengths and leveraging their respective geographic footprints, the merged company is poised to play a pivotal role in reinforcing steel markets across the continent. The companies also anticipate that the merger will offer long-term benefits, including enhanced technological development and operational synergies.
Once the merger is approved and the joint holding company is established, Reinforcing Steel Europe will be better equipped to navigate the ever-evolving challenges of the steel industry, ultimately strengthening its position as a leader in the EU’s rebar production and processing sectors.
