Feralpi Germany starts up new rolling mill
Feralpi Stahl celebrated on Thursday the launch of its new rolling mill. At €220 million ($247m), it represents the biggest investment so far at the rebar mill in Riesa, Saxony, formerly known as Elbe-Stahlwerke, and today part of Feralpi Group.
The technology, supplied by Danieli, enables a new production method for rebar in coil. A spooler plant has been built where the wire rod is processed directly from the rolling vein into a spooled ring. Previously, this was a two-stage process of hot rolling and cold stretching, followed by spooling.
The upgrade allows for output of larger and heavier coils of up to 8 tonnes, which makes production more efficient, Kallanish hears. Cold processing eliminates stretching and spooling for part of the range of products. Nevertheless, some of the cold-stretched ring production as well as the production of mesh and spacers will remain as part of the mill’s downstream processing section.
Feralpi Stahl highlights that the inauguration also marks the start of the first “green” rolling mill in Germany, enabled by the continuous hot endless rolling process, which prevents scope 1 CO2 emissions. The firm notes it is one of two German steel mills awarded with the EU’s EMAS label for emissions far below the permitted standard.
“We firmly believe in Germany’s growth potential and want to be a driving force behind this economic recovery,” says Feralpi Group president Giuseppe Pasini. “However, to translate this confidence into concrete results, synergic action with German and European politics is essential. In particular, we believe it is crucial to urgently address the issue of high energy prices, which has a heavy impact on the competitiveness of our industry, and to recognise the centrality of ferrous scrap as a strategic raw material for a circular economy and resilient manufacturing.”
Christian Koehl Germany
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
