Italian steel bars and special steels manufacturer AFV Beltrame Group said on Thursday that it plans to invest 200 million euros to upgrade the recently-acquired Targoviste special steel plant creating 1,000 jobs in the next five years.
Three months after buying COS Targoviste, the Italian company also announced that it would build a photovoltaic park.
Beltrame Group started the production of rebar—reinforcing bars== at the plant, becoming the only full-cycle rebar producer in Romania. It currently supplies about half of the domestic needs in the construction sector, it said in a press release.
It said that some 100 million euro would be invested in the next five years modernising the machinery.
Some 80% of the budget will be allocated in technology to reduce carbon emissions, increase energy efficiency and move towards a circular economy by reusing resources and minimising waste, the company said.
By the fifth year of the investment, around 1,000 jobs will be created.
„The restart of domestic production of rebar, an essential sector of the steel industry, is an important step towards Romania’s re-industrialisation and will provide the country with a breath of oxygen in the crisis of construction materials caused by the pandemic and the conflict in Ukraine,” AFV Beltrame Group business development Carlo Beltrame said.
In order to relaunch activity at the plant which it acquired in March, Beltrame Group has hired about 300 employees, and intends to take the number to 450 by the end of July.
In the first phase of the project, the mill will produce about 10,000 tons of rebar, with the production capacity increasing to about 30,000 tons a month by 2023, equaling more than 300,000 tons per year.
The plant will be able to supply Romania with about half of its domestic needs of rebar for construction- between 600,000 and 700,000 tons per year. Romania presently imports all of this material from Bulgaria, Turkey and elsewhere.
Beltrame Group also said it plans to invest 100 million euro to build a photovoltaic park with an installed capacity of 100-120 MW and an energy storage system, which will supply the production units.
Beltrame Group says it estimates a turnover of around 140 million euro in Romania this year, similar to 2021.
Beltrame manufactures steel products for use in construction, shipbuilding and excavation and has commercial activities in over 40 countries.