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Other Business Opportunity
Investment opportunity in a copper rod 250 KT/Y production capacity

Mandate ID: IN-9-MAG-7-1903-7
Transaction Type:
Other Business Opportunity

Industry: Metals and mining


Sector: Metals


SIC Code: 50510300 COPPER PRODUCTS


Country of Origin: Italy |


Target Countries: China, India


Business Review

Investment opportunity for the acquisition of copper wire production assets.

- Assets are related to a max 250.000 tons/year (4 shifts) of copper wire production capacity.
- Such large copper production assets (capacity > 220.000T/Y) are rare in the world (12-15 existing). Capacity > 220.000Y allow a better cost optimisation compared to traditional 60.000T/100.000T production units.
- The construction of a brand new 250.000T capacity would require 3 to 4 years, instead of 1 year to dismantle and re-assemble the proposed EU assets. - these European assets can be considered as quite new (built in 2004, revamped in 2013, today production is on hold but assets are regularly under maintenance).
- Moving assets out of Europe will benefit in terms of cost of energy and labour cost. - moving assets closer to copper buyers (like electric automotive industry developing in China or India). The seller can provide training and assistance to the buyer for the first months of the re-start of the activity once relocated assets will be operational (cost of this assistance not included in the price – to be negotiated separately)
- Indicative total price (asset acquisition and disassembly/reassembly costs EUR 10.0 m as compared to new 250.000T/Y production unit would cost around EUR 23.5 m. In addition, buyer reduces the investment time from 3/4 years to approx. 1 year.

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