Walsin’s Subsidiary Cogne Acciai Speciali to Acquire a Controlling Stake in Com.Steel Inox to Advance Circular Economy Initiatives2024.01.26
Walsin Lihwa Corporation (“Walsin”) today announced that its 70% owned subsidiary, Cogne Acciai Speciali S.p.A. (“CAS”), has entered into a definitive agreement to acquire 65% controlling interest in Com.Steel Inox S.p.A. (“Inox”, or the “Company”), the spin-off of stainless steel scrap business of Com.Steel S.p.A (“Com.Steel”), an Italian leading metal recycler. The transaction consideration comprised €24 million in cash on closing and deferred consideration of up to €4 million, contingent on the performance of Inox in the following three years. The completion of the transaction is subject to customary closing conditions and regulatory approvals.
Com.Steel is a prominent scrap metal processor and longtime supplier of CAS. In 2023, it formed a new stainless steel and nickel alloys focused scrap company, “Inox”, in pursuit of strategic flexibility and operational focus. By integrating with CAS, Inox will unlock its standalone potential to drive market visibility and product innovation. After the acquisition, CAS will support Inox in further positioning and developing the Company.
“Stainless steel scrap is a strategic and critical material to support our net-zero initiatives,” said Mr. Yu-Lon Chiao, Chairman of Walsin. “We are excited about this partnership with Com.Steel as we have a shared vision to drive green transition in the industry. The controlling stake in Inox ensures the stability of sources of high-quality recycled feedstock and lowers costs of production through effective supply chain collaboration. Most importantly, it enables us to establish a closed-loop supply chain to bolster Walsin’s commitment to move the circular economy forward.”
This investment is a key component of Walsin’s long-term strategic plan, aimed at embedding sustainability into its value chain. Europe is a proven green pioneer and therefore considered the crucial first step towards Walsin’s circularity roadmap. Walsin will maintain ongoing collaboration with suppliers, partners, and stakeholders, working together to realize a more sustainable future.
Spun off from Com.Steel S.p.A. in 2023, Inox is a trader, processor and recycler of raw materials for the stainless steel and nickel alloys industry. It has an annual recycling capacity of 150,000 tons of scraps in the plant located in Calusco, Italy.
CAS is a world leading manufacturer of stainless steel and nickel alloy long products located in Aosta of Italy, providing manufacturing services of melting, remelting, casting, rolling, forging and machining. CAS has a niche market for industrial certification products, includes stainless steels and nickel alloys long products, valve steels for automotive and tailor-made products on customers drawing in special steels. CAS has a leading position in the European market with sales offices in more than 15 countries around the world.
Established in 1966 and listed on Taiwan stock exchange since 1972, Walsin is an industrial conglomerate with operations spanning wire & cable, stainless steel, and renewable energy. With over 20 production and sales sites across Greater China, Southeast Asia, and the U.S., Walsin products are widely used across industrial, automotive, oil and gas and consumer sectors. Walsin is headquartered in Taipei, Taiwan. For more information, please visit https://www.walsin.com