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october -2009 Stainless Steel World
Exclusive interview with Antonio Marcegaglia
"Giving shape to steel" for 50 year

ANTONIO MARCEGAGLIA CEOAntonio Marcegaglia

Marcegaglia is a market leader in Europe and among the world's top companies in the transformation of steel. The company's strength is largely due to its steel processing capacity. Through its facilities, spread all over Italy and abroad, more than four million tonnes of steel are processed every year. The daily production equals 5,000 kilometres of welded tubes,
open profiles, drawn tubes, panels, coils, strips and sheets made from carbon steel, stainless steel and aluminium, in every size and thickness. Sjef Roymans and Donald Wiedemeyer visited Antonio Marcegaglia to offer their congratulations on the company's 50th anniversary.

SR: When will the production at Marcegaglia's Chinese plant start?

AM: Most probably in the second quarter of next year. We will start with the production of carbon steel and we are planning to use stainless steel machines that we are already using in some of our existing plants.
After the initial phase we will order new machines.

SR: What is Marcegaglia's strategy concerning the stainless steel segment? Is there a tendency to invest more into the development of stainless steel grades?

AM: When we talk about tubes Marcegaglia is undoubtedly the number one manufacturer worldwide. We have
already invested € 120 million into an annealing and pickling line as well as into a cold rolling mill facility at our headquarter in Gazoldo. This is a very significant investment that provides us with self-sufficiency in pickling and rolling. This investment will also enable us to enter the stainless steel flat market. I guess that we will sell between 120,000 and 150,000 tonnes of stainless steel coils, sheets and strips, in addition to our
growing tube segment. The stainless steel segment is only one part of Marcegaglia's
product portfolio which makes up 12 to 15 percent of our total production and turnover.
The growth of our stainless steel tubular products worldwide is another important
target. Thus, we are also making large investments abroad. Our focus is particularly on Russia, where we have
opened a new plant in Vladimir, but also in China with large investments in carbon steel tubing and precision tubing. In Brazil and in the US we are also developing our product range. In three to four years time we expect a total capacity of 180,000 tonnes of welded tubes, which hopefully increases to 300,000 tonnes, depending
on the development in China, Russia and Brazil. From China we will serve the Southeast Asian market aiming to grow significantly in stainless steel tubing. We should be able to produce an additional 150,000 to 200,000 tonnes of flat steel.
We hope to come close to half a million tonnes of converted stainless steel which would turn Marcegaglia into one of the biggest transformers independent from steel mills worldwide.

SR: The key clients of Marcegaglia are distributors and stockholders. Are there any ambitions to focus more on the endusers?

AM: Yes, we want to grow into different directions. The history of the Marcegaglia group shows that there has always been growth into different directions, be it geographically or concerning our product range or end-users. We would rather appreciate to cooperate with our distributors in terms of end-user acquisition than building up our own pool of end-users.
We have high ambitions and while we are the number one producers of flat products in Europe focussing on stainless steel flat products, we still aim to increase our percentage of the European market share. Our second focus is on the growing markets in South America, Russia and China. In a few years time, even if the worldwide consumption of stainless steel will not be immense, the focus will certainly be on those countries.
China and Russia have only a few qualified players and in South America we have the monopoly as the biggest
producer. We consider expansion in terms of market share and product range.

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Exclusive interview with Antonio Marcegaglia

source: www.stainless-steel-world

 
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