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Steel, Danieli: “Ilva, we are here. We challenge China on plants”

ABS, a subsidiary of the Danieli group, has inaugurated QWR in Udine, a 4.0 steel plant, unique in the world for its flexibility. Danieli's president, Gianpietro Benedetti: “We want to become number 1 in the world in plant engineering”. The green model in Taranto would reduce emissions by 75%

Steel, Danieli: “Ilva, we are here. We challenge China on plants”

Sustainability, innovation, safety, but above all the world record for flexibility. Which is not bad, given that the steel market, as well as being very cyclical, is increasingly à la carte, that is tailored to the needs of industrial customers who must be intercepted and satisfied quickly, and that we Italians are historically good at tailor-made, in custom manufacturing. The first steel mill in the world capable of changing a rolling mill not in 2-3 hours, but in just 8 minutes thanks to automatic changes, is QWR, the new ABS 4.0 steel plant, a subsidiary of the Danieli group which alone contributes to 1 billion in turnover (out of the 2,8 billion of the group as at 30 June 2020) and which, thanks to the futuristic warehouse a few kilometers from Udine - in which it has invested 190 million (over the next few years total additional investments will approach one billion) – wants to rise to 1,4 billion in 2023, increasing production by 40% to over 2 million tons of steel per year.

Here half a million tons of wire rod will be manufactured every year, i.e. rolled steel rods with a diameter of 5 to 25 millimeters (here lies the flexibility: being able to switch quickly from the production of one or the other depending on demand) which are exported in 46 countries to produce bolts, springs, bearings, screws, car suspensions, welding electrodes. But the field of excellence is precisely the plant, the pride of Italy in the steel industry, which on this front is the champion of sustainability and innovation and competes directly with the Chinese giants. “Once – comments with FIRSTonline the president of the Danieli group, Gianpietro Benedetti – there were about forty players in plant engineering, today we are a handful, there are no more Americans and we are third, perhaps second in the world. Our goal is to compete with China. As? Lowering costs, thanks to technology, e "becoming Chinese" too. In the sense that our business in China, Danieli China, is now also managed by a Chinese manager, Chang Zhang”.

From a technological point of view, the new ABS system is cutting-edge: here the robotisation of processes is already a reality and does not rob people of their jobs, but simplifies their tasks and guarantees full safety. Process control remains a human responsibility but takes place remotely with automated devices, so no one risks getting hurt. Only for this establishment will they be created additional 158 jobs, out of a total of 9.000 employees of the Danieli group (6.000 in FVG, counting related industries), around which other 2.400 companies gravitate around the world, of which 513 in Friuli Venezia Giulia alone, which also thanks to companies like this is the the only Italian region considered a "strong innovator" by the European Union. And then sustainability: ABS processes steel in electric furnaces that consume 20% less (and reduce waste materials by 50%), uses recycled materials for 85% (ferrous scrap), transports its goods 40% by rail, with the aim of reaching 70%.

A virtuous model already proposed - in collaboration with Saipem and Leonardo - for the new Acciaierie d'Italia in Taranto: it would concern the part of production envisaged in the new electric cycle plan to 2025 (2,5 million tonnes out of 8 million), reducing emissions by at least 75%. “We are also in contact with two companies in Austria and Germany – confirms Benedetti -, always for the same topic, namely the requalification of the plants. Now there is no going back on the environment and we believe that our project can always be valid for the former Ilva of Taranto. As to whether this is sufficient to bring the business back to profit nobody can know, but it can certainly make it more efficient. In Taranto there are enormous problems but also excellent skills, restoring the steelworks is possible. We need to train young people and invest in skills, as we did here in Udine. What you see today was born 15 years ago from a large investment in young people, from an intense collaboration with schools and universities in which we invested 1 billion to bring together training and the labor market, and which will obviously be renewed".

Proving that steel in Italy can recover ground, also taking advantage of the economic rebound after a 2020 that saw the Italian steel industry fall to the production and export levels of 2008, but in reality not for everyone. In fact, the destinies of realities such as Taranto and Piombino must not deceive. Danieli and ABS closed the year in line with the previous ones and are now already preparing to take off: “The steel sector has already recovered a lot in the second half of 2020 and 2021 will be driven by the recovery, by the increase in raw material prices and from the investments of the PNRR – he commented with FIRSTonline Anna Mareschi Danieli, vice president of ABS and president of Confindustria Friuli Venezia Giulia -. As steel producers we see many opportunities in mechanics, in renewable energies (the ABS plant in Sisak, Croatia, will be the first in Europe powered by solar panels) and then thanks to the PNRR and the Superbonus in the infrastructure, building and construction sectors. Then obviously there is also the automotive sector, which however represents only 20% of our market”.

In addition to the former Ilva of Taranto, the other hot topic is just that of the PNRR and the ecological transition, not only in Italy but throughout Europe (Danieli has offices all over the world, 50% of its invoices come from outside Italy and contribute to a fifth of the exports of the entire FVG region): “We'll see – replies Bendetti – but I think it will have positive effects on our business, given that many plants will have to be replaced or upgraded and the money will arrive to do it. Does this mean that we are planning overseas M&A deals? Not for now, the only acquisition we have in the works is in Italy, in Genoa, with a robotics company”. Will it be enough to play with China? “We within 3-4 years we want to become number one in the world in plant engineering iron and steel. To try, we questioned everything, with only two things in mind: investing and innovating. The next economic empire for me will be China, so the challenge is with them: it is a productive and creative country. The new Chinese manager alone is worth a 25% growth”.

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