Italy-based Feralpi Group's steel production in the first eight months of this year returned to pre-Covid levels, even exceeding the volumes of the same period of 2019. Company president Giuseppe Pasini and CFO Vincenzo Maragliano made the announcement during a press conference held within the frame of the Made in Steel exhibition in Milan this week. Its steel production grew by seven percent compared to January-August 2019, amounting to 1.73 million tons. In the first half of this year, the group's revenues reached €879 million, recording an increase of 65.9 percent compared to the first six months of 2020.
These results, explained the management, were driven by the increase in both volumes and prices. In Italy, in particular, government incentives in the construction and automotive sectors had a positive impact. "The first eight-nine months of this year have been brilliant for the entire steel supply chain. However, now we see some shadows ahead, mainly due to the escalation of electricity and gas prices. This is a problem not only for Italy but in all of Europe," commented president Pasini. Feralpi does not rule out possible production interruptions at the most critical moments. Actually, some stoppages are already occurring, also due to the recent slowdown of the domestic finished product market, Pasini indicated.
The group's efforts in decarbonisation were also discussed extensively during the conference. Feralpi will invest around €100 million within the next five years to produce renewable energy. The goal is to reach an installed power capacity of over 100 megawatts for its own consumption, in order to cover 20 percent of the energy needs of the companies of the group in Italy. Feralpi Group aims to reduce CO2 emissions by approximately 85,000 tons per year once the project is completed. The investment will also have a positive economic impact thanks to a competitive cost of electricity compared to market values.
The transition will require advanced skills. For this reason, Feralpi has created the Technical Graduate Program, a program dedicated to young technicians, aimed at developing specialist skills to cover key roles in technical functions. "We want bright young minds to aspire to join Feralpi. In this sense, we want to be the Ferrari of the steel industry," president Pasini commented.