Feralpi to start producing coiled products in Germany

Italian rebar maker Feralpi will begin tests by year end of the new rolling mill at its German Feralpi Stahl plant in Riesa, Saxony. This plant will produce coiled rebar weighing up to 8 tonnes for the construction market. The coils will be made through a completely electrified production process that has zero direct emissions, Kallanish learns from the company.

In its 2023 earnings report, the steelmaker confirms the investment despite the market experiencing a contraction at a European level, with a notable slowdown in the German economy.

Last year, Feralpi’s investments in production and logistics amounted to €169 million ($183m). In Germany, a new scrap yard was recently inaugurated, which has significantly improved the efficiency of the scrap treatment process, resulting in enhanced productivity and quality, the firm notes.

In 2024, the new spooler plant in Italy will become operational at the Feralpi Siderurgica plant. This will enhance the product range available to customers. Later this year, a new garret line will start operating at the Caleotto specialty steel plant, which will produce 19-32mm coil, enhancing flexibility.

Last year, Feralpi reduced by 24% scope 1 and 2 emissions. It has vowed to cut by 50% core boundary scope 1, 2 and 3 emissions in the production of hot rolled products, as well as scope 3 non core boundary emissions by 25% by 2030.

“The steel market in Europe is going through a complex period, recording a decline of around 10 million tonnes between 2022 and 2023 … In this context, Feralpi firmly maintains its market shares despite the increase in energy costs and the scarcity of scrap weighing on the electro-steel sector. We want to be ready and technologically advanced when the consumption recovery is also accompanied by ever greater attention to the quality of the product and the production process from a green perspective,” says company president Giuseppe Pasini.

Feralpi Holding maintained consistent production in 2023 at 2.42 million tonnes and generated revenue of €1.7 billion, down 27% on the exceptional result of €2.3 billion in 2022. The company’s global presence was reaffirmed as it generated 61% of its revenue from international markets, slightly lower than the previous year’s 63%.

The decrease in revenue can be attributed to rising production costs, specifically the increase in raw material expenses. This led to a significant increase in the proportion of raw material costs in the overall production value, which rose from 50.9% to 63.8%. The higher production costs caused a substantial decrease in Ebitda, which dropped to €83m from €501m in 2022.

Natalia Capra France

kallanish.com