FACE TO FACE
be combined for specific surface requirements.
The production programme for heavy plates
has also been improved and a wide array of
end uses are now covered, with specific
certifications for boilers, pressure vessels and
naval construction among others,” concluded
Enrico Paladini.
Strategic focus and
market trends
ISMR SAYS :
“Quality, production development and logistics are
among the keywords for Marcegaglia’s future. These
have also characterised the recent growth of the
Italy-based steel service group”
A KEY VISION
W
strategy followed in the tube sector, to create a
diversified network of sourcing-productiondistribution with horizontal, downstream and
upstream growth.
“As a result, the group is now a unique
player in the European and global steel industry,
guided by key values such as synergies (raw
material purchasing, processing, logistics,
market), economies of scale, production
flexibility and diversification of products and
markets,” Antonio Marcegaglia told ISMR.
New capacity for flats
“This vision is translated into flat production
where the group is active in carbon and
stainless steel coils, sheet and narrow strip, but
also in colour-coated steel production and heavy
(quarto) plates. Marcegaglia is an independent
player that can supply other service centres as
well as specialised customers, offering an
54 | sheetmetalplus.com | ISMR OCTOBER 2014
up to Z800 (allowing for different coating
between sides), but new grades have also
been developed such as dual phase DP600,
DP800 and DP1000. For surface finishes,
Ecorsteel anti-fingerprint organic coated steel is
a permanent, ecological and anti-oxidant
coating, transparent or colour-hued, that
combines aesthetic values with high forming
and drawing capabilities for applications in the
building sector, household appliances and
metal furniture.
“The coil colour-coating units are constantly
increasing their efficiency and output, with
more than 20 standard painting cycles that can
This strategy has led the Italy-based group to
develop new high-grade quality and niche products,
based on new capacity
Marcegaglia’s Chairman and CEO,
Antonio Marcegaglia, outlines his vision
and strategy in the flat products, tube
and coil sectors to ISMR
hat are the key qualities for any player
who wishes to operate on a global level
in the steel industry? Certainly, the
ability to anticipate market trends as well as to
react quickly and positively to market shifts are
crucial qualities for any company. But, says
Marcegaglia’s Chairman and CEO Antonio
Marcegaglia, the real differentiator is the
strategy, the overall vision, that directs the
group’s future.
Today, Marcegaglia is considered to be one
of the most important steel service centre
players in the steel industry - from carbon steel
tube production (with an extremely wide range
of products) to the stainless steel tube sector
(with a leading position in terms of global
production) as well as in carbon and stainless
steel flat products and heavy (quarto) plates.
Marcegaglia started an expansion programme
about 15 years ago, pursuing a successful
new application sectors. For example, among
others, hot rolled, high yield strength steel for
cold forming can now be supplied up to
S600MC (EN 10149-2) as well as cold rolled
products with high yield strength for cold
forming in grades such as HC420LA, HC180Y,
HC220Y, HC260Y (according to EN 10268).
Special quality steels for radiators and drum
packaging are also maintained as production
standards,” explained Enrico Paladini.
Thanks to the latest process upgrade on
several of its galvanizing lines, Marcegaglia has
also increased its flexibility in zinc coating so
that coating weight may be defined from Z50
“Globally, I see a slowdown of emerging
countries’ economies that have been driving
global consumption of steel over the last few
years. I am talking mainly about China and
Brazil, here. There is a question mark over
Russia at the moment because of the political
situation. So, I am not expecting significant
increases in the European economy although
there might be slight improvements in eastern
Europe,” Antonio Marcegaglia, Chairman and
CEO, explained.
“On the other hand, I believe that more steel
and steel-derived products and machinery will be
exported to dollar economies in the next year or
so as the dollar gains in strength. So, in summary,
domestic and European steel consumption will
remain as it is or even slightly improve.”
As far as Marcegaglia is concerned, he
confirmed that Europe is its main market but he
is keeping an eye on various export opportunities
outside Europe arising from the strong dollar.
Antonio Marcegaglia,
Chairman and CEO, Marcegaglia
increasing range of products in terms of steel
grades and typical applications, a unique mix of
services and quick response times with stock
availability in standard sizes,” explained Enrico
Paladini, global commercial manager of carbon
steel coils.
This strategy has led the Italy-based group to
develop new high-grade quality and niche
products, based on new capacity at its Ravenna
and S. Giorgio di Nogaro (Italy) plants. The setup and revamping of new lines have expanded
production capacity, especially in terms of
range and grade feasibility, with better control
of production processes and the capability to
supply more and more specialised products.
“This has enabled the consolidation of
historical markets, while we have also entered
ISMR OCTOBER 2014 | sheetmetalplus.com | 55
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“We will probably consolidate by +5% of
volume growth which should translate to a
similar growth in sales volume for Marcegaglia
(last year it was over 4.1 billion euros). This is
because average prices have come down
slightly so we have compensated by increasing
our volumes. We believe, by doing this, that
we have gained some market share on flat
coated products and stainless steel products,”
Antonio Marcegaglia explained.
He intends to focus even more on
Marcegaglia’s core business of steel processing.
He also intends to develop its product range and
simplify its product portfolio, focusing on the
three main families (stainless steel and special
products, welded tubes and flat carbon steels).
“We will invest more in product
development versus end-user project business
and high value-add in all these three main
areas,” Antonio Marcegaglia outlined. “We
think that competition from emerging
countries, like China, Russia and India, on
downstream cold rolled and coated products
into Europe will become even more significant
and we need to respond to that to
grow/maintain our market share.
“We will also take advantage of selected
opportunities to grow in other markets. For
example, stainless steel markets in Turkey. We
will also strengthen our international presence.
I believe that we will see also more potential
consolidation and restructuring in most of the
value chain segments of the industry,
particularly in the service centre distribution
sector and welded tubes sector. So, we may
take advantage of that – we are open to
potential acquisition opportunities.
“Finally, we are working on a restructuring
and re-launching project with ArcelorMittal on
the potential development of ILVA (the Italian
steel mill with current issues in terms of
production output and supply).”
We will invest more in product development
versus end-user project business and high
value-add in all these three main areas
An eye on logistics
Another focus of Marcegalia expansion
strategy is logistics: the efficiency of its
distribution network connecting manufacturing
plants with each other and with customers has
always been among its top priorities, and the
group has supported and sustained activities to
improve its performance in this field.
Here, especially in the flat products sector,
Marcegaglia has been able to establish its
presence in new areas through the use of
intermodal terminals (hubs) strategically located
in harbours in the Mediterranean Sea, but also
on the Atlantic Ocean, the North Sea and the
Baltic Sea, as well as storage areas near
important railway connections. This has
significantly cut delivery times as well as
carbon emissions: a network of more than ten
logistics hubs across Europe to enhance
flexibility and just-in-time service.
At the heart of this network, Marcegaglia’s
Ravenna plant (Italy) operates as the main
production and shipping centre for the group’s
flat product chain, with its handling capacity
(now 500 trucks per day) also significantly
upgraded thanks to the completion of new
internal railway tracks and the expansion of the
harbour docks area (220m added for a total
length of 800m, 9.5m draught) for ship access.
The plant in San Giorgio di Nogaro, specialising
in heavy plate production, is also conveniently
located with easy access to sea and rail freight
along the same Eastern coast of Italy.
In Ravenna, the group has completed a
massive ten-year investment plan that has
strongly enhanced Marcegaglia’s role as a
ISMR OCTOBER 2014 | sheetmetalplus.com | 57
FACE TO FACE
flat steel producer, increasing its overall
capacity of cold rolled material and doubling its
production of hot dip galvanized and colourcoated steel.
“Our Italian and European-based factories
are supplying mainly to the European market.
Eastern European countries like Poland also still
exhibit interesting growth patterns. The
strength of the dollar is allowing us to export
competitively into Mediterranean markets and
the US which has opened a window of
opportunity for us. The third element of growth
will be the ramping-up of our plants outside
Europe i.e. China, Russia, Brazil and the US
plant. We are also considering a project in
Turkey for stainless steel tube for the Turkish,
Middle Eastern and North African markets,”
confirmed Antonio Marcegaglia.
The stainless challenge
Marcegaglia’s stainless steel business has
already been recently expanded with new lines
for flat production (coils and cut-to-length
industrial sheet) at the Gazoldo degli Ippoliti
plant which is now operating at full capacity.
New upgrades on the first pickling line will be
designed to improve quality and productivity,
focusing mainly on ferritic steels.
Marcegaglia’s headquarters today is equipped
with two annealing and pickling lines and two
cold-rolling and skin-passing lines capable of
processing hot rolled steel (1D finish) from 2 to
6mm thickness and cold rolled steel (2B finish).
These coil processing lines can also supply inline edge slitting. Downstream, Marcegaglia can
count on the integrated production of stainless
sheet and strip as well as flat and angle bars.
The new cut-to-length line can work hot
rolled and cold rolled materials with optional
polishing (220-240-320 grit), scotch-brite
brushing and paper or laser film protection on
each sheet. The automated packaging system
I believe that we will see also more
potential consolidation and
restructuring in most of the value
chain segments of the industry
58 | sheetmetalplus.com | ISMR OCTOBER 2014
assembles standard packages weighing from
1500kg. All production conforms to main
manufacturing standards, such as EN 10088-4
for structural, building and construction
applications with CE marking and EN 10028-7
for all pressure purpose applications certified
by TÜV: AD 2000-W2 (pressure equipment) and
W10 (low temperature pressure equipment).
“The group’s investments in this area have
further reinforced our role as the world’s
leading manufacturer of stainless steel welded
tubes, supported by production plants in Brazil,
USA, China, Russia and Italy,” Antonio
Marcegaglia told ISMR. n
EDITOR’S NOTE
Marcegaglia will be presenting its
flat product range at the EuroBLECH
exhibition in Hanover (21-25 October)
on stand B34 in Hall 17
CONTACT
MARCEGAGLIA Headquarters
Tel: +39 0376 685 1
Fax: +39 0376 685 600
www.marcegaglia.com