JSW Steel signs deal with Cevital to buy Aferpi for Rs 6 billion

The acquisition would help JSW Steel expand its reach in the specialised steel market, especially in the automobile sector

Sajjan Jindal-owned JSW Steel has signed a deal with Algeria's Cevital Group to buy Italy's second largest steel firm, Aferpi, formerly known as Lucchini, for around Rs 6 billion.

Aferpi has an annual production of two million tonnes in Piombino and manufactures special steels used in railway, automobile and earth-moving vehicles, among others. 

JSW's senior officials reached Italy on Friday and signed an agreement document at Italy's Ministry of Economic Development. JSW Steel will present the industrial plan for Aferpi, said sources.

Cevital, the largest privately-held group in Algeria, had bought Lucchini in 2014 and renamed it Aferpi. Originally, however,