JSW Steel announced that its Italian subsidiary JSW Steel Italy Srl has signed a share purchase agreement with South Africa based Industrial Development Cooperation, owned by the Government of South Africa under the supervision of the Department of Trade Industry and Competition, to acquire the remaining 30.73% share in forged steel producer GSI Lucchini SpA for EUR 1 million. The balance share capital of 69.67% of GSI Lucchini is already held by JSW Steel Italy Srl.
The manufacturing unit of GSI Lucchini is located in Piombino in Tuscany Region of Italy, providing easy access to export markets through the port of Piombino. The location of the plant allows specific advantages in terms of lead time, service level, and logistics cost in its target markets. The port based facility also gives GSI Lucchini the access to import raw materials, bars, blooms & billets to supplement supplies as when required. GSI Lucchini is a producer of forged steel balls used in grinding mills with predominant application in mining processing. The high Carbon alloyed steel bars are forged into balls and processed to give a uniform metallurgical structure. The high hardness structure combines excellent abrasion resistance with the toughness needed to resist breakage during the milling operation. Chemistry and heat treatment can be customized to best fit the application needs of the end users. The brand is widely recognised in Europe and Africa, and is among the prominent supplier in African mines.
The transaction is subject to fulfilment of conditions precedent and other terms mentioned in the share purchase agreement.