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Cogne acquires Mannesmann Stainless Tubes, eyes increased sales

The acquisition of Mannesmann Stainless Tubes GmbH (MST) by Walsin Lihwa’s Italian subsidiary, Cogne Acciai Speciali (CAS), from the German steelmaker Salzgitter Group for €135 million ($146m) marks a significant strategic move in the stainless steel industry. Here are the key points highlighted from the transaction:

  1. Acquisition Strategy: Walsin Lihwa is actively pursuing strategic acquisitions to enhance its position in the stainless steel and nickel-based alloy market in Europe. The acquisition of MST strengthens CAS’s position as a comprehensive manufacturer in this sector.
  2. Strategic Integration: The acquisition aligns with Walsin Lihwa’s strategic goals of entering high-end and high-growth markets. By integrating MST into its network, Walsin Lihwa aims to leverage synergies and enhance its market presence.
  3. Portfolio Management: Salzgitter Group’s decision to sell MST is part of its portfolio management strategy outlined in its Salzgitter 2023 strategy. This approach involves divesting from businesses not aligned with its development areas while facilitating entrepreneurial opportunities for the acquired companies within new networks.
  4. Market Focus: MST specializes in manufacturing seamless pipes for industries requiring products capable of withstanding extreme pressures and temperatures, such as oil and gas, aerospace, and chemicals. The acquisition positions Walsin Lihwa to cater to these high-demand industries.
  5. Supply Chain Optimization: Walsin Lihwa expects to enhance MST’s market share by providing stable raw material supplies from CAS. This optimization of the supply chain is expected to drive growth and enable full utilization of CAS’s melting capacity.

Overall, the acquisition of MST represents a strategic move by Walsin Lihwa to strengthen its presence in the European stainless steel market and capitalize on growth opportunities in high-end industries.