Toyota to produce first EU-made BEV in Czechia
Japanese automaker Toyota says it will produce its first Europe-made battery electric vehicle (BEV) in Kolín, Czech Republic, Kallanish reports.
For that, it has earmarked €680 million ($791.2m) in new investment, of which €64m is to be provided by the Czech government for a dedicated battery assembly facility. Toyota Motor Manufacturing Czech Republic (TMMCZ) will expand its existing Kolín plant from 152,000 to 173,000 square metres to accommodate new vehicle production, battery manufacturing, and new paint and welding shops.
Currently, TMMCZ produces the Aygo X and Yaris Hybrid at a capacity of around 220,000 units/year. The carmaker believes the new investment will create about 245 jobs in the country and benefit the supply chain, as the majority of parts will be sourced locally.
“This great success is the result of a series of negotiations in both Europe and Japan, which my team and I had the privilege to work on,” comments Lukáš Vlček, Czech industry and trade minister. “Toyota’s investment is crucial for the future of the Czech Republic automotive industry, as well as for transitioning our economy to higher added value, as defined in our economic strategy.”
The government expects its investment will return €250m in “benefits for the state”, noting the automotive industry makes up around 10% of the country’s GDP.
TMMCZ is Toyota’s first logistics EU mega hub location, supplying vehicles to Toyota and Lexus dealerships in Germany, Austria, Poland, Slovakia, Hungary and the Czech Republic. It started production in 2002.
Yoshihiro Nakata, ceo of Toyota Motor Europe, believes adding a BEV to its production line will enhance Toyota’s presence in the European market and contribute towards more efficient transportation.
Production details for both BEV and batteries were not disclosed.
Kallanish Asia
Marcegaglia updates price lists amid costlier logistics, HDG
Italian re-roller and steelmaker Marcegaglia has updated its current carbon tube price list, reflecting higher raw material and delivery costs. The update shows rising internal and external logistics expenses, as well as higher costs for hot-dipped galvanised coil used in the production of galvanised tube.
Marcegaglia sales director Enrico Paladini tells Kallanish the new price list incorporates higher external logistics costs, driven by rising labour, fuel, toll fares and other expenses. For internal logistics, the company has introduced a surcharge linked to minimum order quantities (MOQ).
He explains that the distribution sector’s buying behaviour has shifted since Covid, with customers now placing smaller and more frequent orders, combining multiple specifications in single truckloads. This trend, reflecting ongoing market uncertainty, has lengthened both loading and unloading times.
Transport firms are now imposing surcharges for loading times exceeding two hours. When customers buy 23 product types in a single shipment, trucks often need to load from multiple warehouse areas, particularly in larger facilities, causing delays and additional costs.
Under the new price list, orders of fewer than two packs of 6-metre welded tubes will incur a MOQ surcharge of €20/tonne ($23/t). This initiative marks a first step towards gradually restoring the economies of scale that are essential for a tube manufacturer, with the target to improve efficiency and cost management, Paladini notes.
Given the high complexity of current orders, the move also encourages buyers to optimise their purchases, making them faster to process and to get them in house. A “conditional delivery” surcharge will also be applied to customers requiring special delivery services. The surcharge amount will be determined based on the specific order and service requirements, Paladini confirms.
The company will also apply an increase to the nominal value of the galvanised tubes price list. This adjustment follows the widening of the spread between hot rolled coil and galvanised coils as a result of the EU safeguard amendment earlier this year, coupled with improving European galvanized steel demand.
This situation has enabled coil producers to widen the price spread between black hot-rolled coil and HDG to €130-140/tonne, compared with the previous €120/t. The cost increase has so far been absorbed by re-rollers.
According to Paladini, the European Commission’s policy is pushing imports back to 2015 levels. September announcements on CBAM and safeguards could have a significant impact on HRC procurement for the coming months and year ahead.
Kallanish understands several re-rollers, tube makers and steel service centres are also considering similar measures, including raising prices for new orders in line with increasing European HRC prices.
Natalia Capra France
European HRC market stable; mills bullish despite muted demand
Fastmarkets’ calculation of the daily steel hot-rolled coil index domestic, exw Northern Europe was €578.33 ($673.67) per tonne on September 5, down slightly by €0.42 per tonne from €578.75 per tonne on Thursday September 4.
The Northern European index was stable week on week but up by €18.15 per tonne month on month.
Trading remained muted in the region, with transaction prices for steel trending below target offers.
“We purchased slightly more [HRC] in end-July/early August, when European mills started raising prices, so there is no immediate need for bookings,” a distributor in Germany told Fastmarkets.
Most buyer sources estimated achievable prices at €570-580 per tonne ex-works, with transactions for October delivery HRC mainly reported within this range.
This was in contrast to offers at €600-630 per tonne ex-works for October and November delivery HRC in Germany, the Benelux area and Nordic states.
Leading European mills were heard to be aiming for €630 per tonne ex-works for November and €650 per tonne ex-works for December delivery HRC.
But sources pointed out that November and December offers were not yet announced officially`, and were rather “a price idea” so far.
October offers from suppliers still stood at €610 per tonne ex-works.
On Friday, several sources said that €600 per tonne delivered (around €580-585 per tonne ex-works) was achieved in deals in Poland.
In Southern Europe, meanwhile, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €550.73 per tonne on Friday, up by €3.23 per tonne from €547.50 per tonne on Thursday.
The index was up by €9.06 per tonne week on week and up by €15.73 per tonne month on month.
Italy’s HRC market was also waking up slowly after the summer lull, with only sporadic trading reported in the week to September 5.
But local mills were also aiming to get higher prices. Notably, target offers were reported at around €570-585 per tonne ex-works from integrated mills and re-rollers for October-November delivery HRC.
One European mill was offering October delivery HRC at €600 per tonne delivered.
Buyers, however, said they were not in a hurry to make new bookings, sitting on sufficient stocks. They estimated tradeable values at €540-550 per tonne ex-works.
Lack of new imports due to the looming implementation of CBAM and new steel safeguard measures was considered to be the major driver behind producers’ bullishness, while real demand was still stable at low levels, sources said.
Offers from Turkey, meanwhile, remained around €520-540 per tonne CFR, including the EU anti-dumping duty.
From India, offers were reported at €520-530 per tonne CFR for October-November shipment of HRC.
