Romanian investor takes over bankrupt steel wire manufacturer

Intertranscom Impex, a producer of welded mesh from Bacau, northeast Romania, controlled by local entrepreneur Ioan Teslaru, took over for EUR 7.5 million in a public auction the assets of wire factory Dan Steel Group Beclean – a company that expanded rapidly since it was founded in 1991 but faced liquidity problems since 2017.

Intertranscom Impex reported a EUR 372 million turnover in 2022, when it achieved EUR 12.6 million net profit. Its turnover has nearly doubled from under EUR 200 million in 2020. The main activity of the company is the production of welded mesh.

Dan Steel Group Beclean was involved in the production of ferrous metals in primary forms and ferroalloys (nails, galvanized wire, braided wire, welded mesh, panels) sold on both the domestic market as well as in Hungary, Poland, Serbia, Czech Republic, and Slovakia.

A decrease in business volume in 2017 led to a reduction in the company’s working capital and a significant increase in its debt. Later in 2018, measures imposed by the European Commission regarding the imports of certain categories of products belonging to the steel industry forced Dan Steel Group Beclean to secure its raw material from the EU suppliers, under less favourable terms – which created additional pressure on the financial situation of the company.

At the time of its bankruptcy, the company was owing EUR 35 million.

(Photo source: CITR)