Unconfirmed reports from market sources point to a possible merger of a major industrial group in Italy with a steel giant thus paving way for further inroads in Italian steel sector by the steel giant, improving possibilities of acquiring some ailing steel plants

It is heard that steel distribution arm of a global company is in close negotiation with CLN Group for merging in one company.

CLN is an Italian company with the head quarter in Turin, specialized in supplying the automotive industry. With a turnover of about EUR 1.54 billion and 8,400 employees and production units or offices in more than 20 countries around the world, CLN is one of the world leader in working, stamping and assembling steel and metallic components for the automotive industry.

The company has been established by Mario Magnetto during the 60’s as supplier of worked steel sheets to FIAT. From there CLN was rapidly expanding also thanks to strategic collaboration with steel producer erstwhile Arcelor and now Arcelor Mittal have a participation since the 70’s and Japanese trading giant Marubeni Itochu Steel has acquired 10% of CLN last year.

CLN Group is including 3 divisions:

MA (Magnetto Automotive) - The automotive division - MA is the Group Company specialized in producing and assembling steel automotive structural parts, components, subassemblies and modules. has units in Italy but also in South America (Argentina and Brasil), France, Serbia, Poland, India, Turkey and South Africa and today manages 26 production plants and 3 Research and Development Centers. It is supplying worked steel sheets to all major automotive industries such as FIAT, Bmw, Daimler, Volvo, PSA, GM, Mercedes and is covering the 60% of Group total turnover.

MW (Magnetta Wheels) - The wheels division, MW is a steel wheel market leader for all vehicle types and one of the leading manufacturers of motorcycle cast spoke wheels. Each model is designed, tested and manufactured with the guarantee of top safety standards for producer personnel and vehicle users. Its 11 production plants located in Europe, Turkey, South Africa and Asia have a yearly production capacity of 21 million pieces.

CLN SSC - The network of service centres;

CLN SSC is the backbone of the history and development of the Group’s activities. The Division is present in the transformation and distribution of flat steel market for various uses, and from the automotive to the domestic appliances market and many other general areas of industry where steel is used.

Recently CLN has created a joint venture with Baosteel in China, from where about 3.5 million of wheels per year are produced.