CITR and Prime Insolv facilitate Dan Steel Group's wire factory sale in Beclean for €7.5M

The Dan Steel Group Beclean wire factory, one of the most important companies in the Romanian metallurgy industry, in bankruptcy, was sold at a public auction for 7.5 million euros to Intertranscom Impex SRL, manufacturer of welded mesh from Bacău. The new owner plans to restart production and to retransform the factory in one of the main employers in Beclean.

“We have succeeded, following a comprehensive and rigorous process, to identify viable investors for one of the companies that played a key role in the metallurgy industry. Through this successful transaction, we set the stage for the continued efficient development of the metallurgy industry in Romania and we manage to save another important objective from the history of Romanian business,” said Andrei Besoiu, Sales Manager, CITR Cluj.

The factory sold is located at Strada Valea Viilor no. 3, in Beclean, Bistrița-Năsăud county. The asset is represented by the wire production factory for hard and soft wires, respectively derivative products from wire, welded meshes, nails, fence panels, barbed wire, and consists in 406,606 sq m of land, buildings and the associated equipment.

The CITR Cluj branch, together with Prime Insolv Practice, as judicial liquidators, successfully organized the public auction on January 25, 2024 at 2:00 PM, at the headquarters of Prime Insolv Practice SPRL, located in Bucharest, Aviatorilor Boulevard no. 52.

Founded in 1991, Dan Steel Group Beclean SA had as main activity the production of ferrous metals, in primary and ferroalloy forms (nails, galvanized wire, woven wire, welded mesh, panels etc.), intended for both the domestic market and the external market (Hungary, Poland, Serbia, CzechRepublic, Slovakia). The products manufactured by the company were intended mainly for the construction and agriculture sectors, as well as for other branches of industry, which produced consumer goods. The decline in turnover began in 2017 when the decrease in business volume led to a reduction in working capital as well as to a significant increase in the degree of indebtedness. Last but not least, the measures imposed in 2018 by the European Commission on imports of certain categories of products belonging to the steel industry obliged Dan Steel Group Beclean SA to secure its raw materials from the EU, under much more onerous contractual conditions for it, and with advance payment, which created an additional pressure on the financial situation of the company which accumulated debts of over 35 million euros.