Trasteel's steel trading and processing group is growing through selective acquisitions as part of the group's opportunistic strategy and low-risk trading model, said Chief Executive Gianfranco Imperato. ,
,During a podcast by investment analyst firm SPACInsider, which Kallanish follows, Imperato describes Trasteel as being at the center of the steel supply chain, serving as a customer for manufacturers and a supplier to end users.
Although the steel market is considered mature, it is actually imperfect, as price differences exist not only over time, but also geographically, while industrial assets can sometimes be available at discounted prices.
"So there is a significant opportunity to profit from buying and selling companies, not just from buying and selling products," he says.
On acquisitions, Imperato says the group is targeting specific opportunities as they arise, rather than following a fixed strategy. He points to three recurring scenarios: European companies at the stage of inheritance, when the founders have no heirs involved in the business, companies experiencing difficulties in financing their working capital, and companies in which disagreements arise between partners.
He notes that the high capital intensity of the steel sector makes it unattractive to direct investment and financial institutions, which opens up new opportunities for operators with the necessary management skills. When assessing the targets, the group prioritizes economic efficiency and management quality.
"Obviously, income is necessary, but you benefit if your expenses are under control. And these are two key points - economic efficiency and managerial skills, which we study before concluding a deal," adds Imperato.
He also strives to remain independent of steel production. "Steel production is very cyclical. This requires much more capital investment, and requires a completely different approach. In fact, we manage the distribution between the semi-finished product and the final product. Products and services that we provide to many of the customers inhabiting our market."
In addition, he argues that the return of trade barriers and supply chain disruptions has restored the value of skilled intermediaries after years of lack of intermediation in the era of globalization. He talks about how a small entrepreneur from Milan could fly to Vietnam and purchase coils directly.
"The difficulties in the world create the need for such