Walsin Lihwa’s board of directors has announced a significant investment in the stainless steel recycling sector, marking a key step in the company’s commitment to sustainability and circular economy practices. Today, the board approved the acquisition of a 65% stake in Italian company Com.Steel Inox (Inox) by its subsidiary Cogne Acciai Speciali (CAS) for a total of 28 million euros (approximately NT$950 million). This move is set to consolidate critical material sources for Walsin Lihua’s stainless steel manufacturing process.
Com.Steel SpA, recognized as a leading metal recycler in Europe, has been a long-standing supplier to CAS. Inox, a subsidiary of Com.Steel SpA, specializes in the recycling of stainless steel and nickel-based alloys. This acquisition is a strategic step for Walsin Lihua, ensuring a stable supply of high-quality recycled raw materials, which is essential for the company’s net-zero action plan.
Jiao Youlun, chairman of Walsin Lihwa, highlighted that scrap stainless steel is pivotal in supporting the company’s sustainability goals. The collaboration with Com.Steel, a company sharing similar visions for a green future, aims to jointly advance the green transformation of the stainless steel industry.
Investing in Inox aligns with Walsin Lihwa’s strategy to reduce production costs by deepening partnerships within key supply chains. Jiao Youlun emphasized the significance of this investment in building a complete closed-loop supply chain. This approach will enable the company to connect with downstream customers, establish a scrap steel recycling cycle, and fulfill its commitment to promoting a circular economy.
The move by Walsin Lihwa to acquire a majority stake in Inox demonstrates the company’s proactive approach to integrating sustainable practices into its business model. It represents a crucial step in enhancing the efficiency of its supply chain and underscores the company’s dedication to environmental stewardship in the stainless steel industry.
