Italian group Beltrame pledged to invest EUR 100 mln in the existing steel plant COS Targoviste, which is close to taking over, and invest EUR 300 mln in a new plant for the construction of rebar and rolled wire.

Initially, about 450-500 jobs will be created, followed by another 1,000 new jobs in the coming years, according to the investor’s plans. At present, COS Targoviste still employs about 90, mainly for the maintenance of utility networks and the preservation of the equipment.

Beltrame received the competition body’s permit to take over COS, but the deal still depends on COS completing the insolvency procedures. Other bidders interested in COS’ assets also challenged the outcome of the tender, and their claim must be settled before finalizing the deal.

Beltrame Group aims to transform the COS Targoviste plant into a competitive special steel production unit at European level. Thus, in the next 4 years, approximately EUR 100 mln will be invested in the modernization of the equipment, respectively the steelworks and the rolling mills, as well as approximately EUR 40-50 mln will be injected as working capital, the group announced.

"We have included COS Targoviste in our investment plans as it is a steel plant with a rich history and a lot of experience in the steel industry, and the products that can be produced here are complementary to the steel bars we already produce in Donalam Calarasi. We will create a synergy with the rolling mill we own in Calarasi and the Targoviste mill will return to the production of special steels for which it was originally built. We will start production in the existing steel mill and the two rolling mills as soon as possible. At first, we will produce rebar, even if the plant cannot be competitive for this product, and later we will produce special steel, as the latter is more difficult to produce and requires more time to train the workforce. I am sure that in a couple of years we will have the same range of steels that we have now at Donalam”, explained Carlo Beltrame, Group Business Development at AFV Beltrame.

In addition, in 2022, AFV Beltrame Group will start in Targoviste the construction of a new project worth EUR 300 mln, namely an eco-friendly factory that will produce rebar and rolled wire. The construction will last a maximum of 4 years, and the production capacity will be approximately 600 thousand tonnes per year.

The factory will stick with the principles of sustainability and will be equipped with innovative technology, which will ensure low energy consumption. The construction project of the factory also includes a photovoltaic park, which will supply the new eco-smart factory.

andrei@romania-insider.com

(Photo source: George Timakov/Dreamstime.com)