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Steel Market: Distribution, Production & Processing 1 | 2013<br />

March<br />

EUROPEAN EDITION<br />

Steel distribution | Turbulent seas<br />

Focus on Italy | A dicult year<br />

United Kingdom | Stable outlook<br />

Montan- und Wirtschaftsverlag GmbH.<br />

Postfach 10 51 64, 40042 Düsseldorf<br />

PVSt, Deutsche Post AG,<br />

Entgelt bezahlt, 3018, ISSN 2191-0618


Editorial K 3<br />

Sabbatical Year 2013<br />

Dr.-Ing. Wiebke Sanders<br />

Editor-in-Chief<br />

Tel. +49 211 69936-131<br />

<strong>stahlmarkt</strong>@stahleisen.de<br />

WW K This is how some sector experts describe Europe’s<br />

steel market in the present year. The phrase originates<br />

from the word »Shabbat« (meaning rest or cessation in<br />

Hebrew) and many believe that the prospects for 2013<br />

will remain bleak. »The EU steel market in 2013 looks<br />

set to remain fragile. There is continued risk of supply<br />

and demand distortions,« according to Gordon Moffat,<br />

Director-General of Eurofer, the umbrella organisation<br />

of the <strong>European</strong> steel industry.<br />

WW K Steel demand in the EU fell almost 10 %, to about<br />

143 million tonnes, in 2012 and is set to fall a further<br />

1 % in 2013 (to roughly 141 million tonnes) according<br />

to estimates by Eurofer. A slight recovery is expected on<br />

the <strong>European</strong> steel market in 2014, though demand still<br />

remains about 30 % below the high level of the boom<br />

year of 2008.<br />

WW K Whereby the situation differs greatly in the various<br />

regions of Europe: while the economic crisis is still having<br />

a major effect in southern Europe, the steel market in<br />

central eastern Europe is comparatively robust. But: »The<br />

intensity of competition on international markets has<br />

risen considerably again,« as Hans Jürgen Kerkhoff,<br />

President of the German Steel Federation, recently<br />

pointed out at a steel conference in Germany. Europe’s<br />

steel sector is contending with high raw material and<br />

energy costs, emissions trading, trade barriers, and<br />

current or imminent adaptive processes. »Unprofitable<br />

locations must not be kept alive artificially by means of<br />

government support. Temporary surplus capacities must<br />

not become permanent overcapacities,« he continued.<br />

WW K There is, however, light at the end of the tunnel<br />

and circumstances will improve in 2014 according to<br />

Gordon Moffat: »We do expect a more supportive<br />

economic environment towards the end of the year. But<br />

it will take most of 2013 before our customers in<br />

industry and the steel distribution chain will notice any<br />

improvement in business conditions.«<br />

Steel market in Europe<br />

Economic indicator euro-zone<br />

Market supply, EU 27 (in million tonnes)<br />

65<br />

120<br />

250<br />

60<br />

55<br />

50<br />

45<br />

40<br />

35<br />

30<br />

Purchasing Managers Inde left side<br />

Economic condence<br />

right side<br />

Indepoints, latest value, Jan. 13<br />

07 08 09 10 11 12<br />

13<br />

110<br />

100<br />

90<br />

80<br />

70<br />

60<br />

200<br />

150<br />

100<br />

50<br />

0<br />

192<br />

2006<br />

201<br />

2007<br />

185<br />

2008<br />

121<br />

2009<br />

148<br />

2010<br />

157<br />

2011<br />

142 141 146<br />

2012 p 2013 f 2014 f<br />

Source: Markit Economics, EU-Kommission, Eurofer, WV Stahl<br />

p<br />

Prognosis, f Forecast<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


4 K<br />

CONTENT 1.2013<br />

STEEL INTERNATIONAL<br />

6 Contentious issue: shale gas<br />

8 Emerging markets – the future for German SME?<br />

10 Russian steel producers react to market changes<br />

12 The steel industry: China continues to set the pace<br />

UK Quarterly Balance of Trade<br />

in million tonnes<br />

3<br />

2<br />

1<br />

All steel products Q3 2008 – Q2 2012<br />

Exports<br />

Imports<br />

2.2 2.1<br />

1.8<br />

1.9<br />

1.8 2.0 2.0<br />

2.0 2.0<br />

1.8<br />

1.6 1.7 1.6 1.6 1.7 1.6<br />

1.7<br />

1.5 1.5<br />

1.5<br />

1.5<br />

1.4<br />

1.3 1.4 1.4<br />

1.4<br />

1.3<br />

1.3 1.3<br />

1.0 1.1<br />

1.0<br />

SPECIAL: NORTHERN EUROPE/UK<br />

14 Stable outlook<br />

18 New solution for mould, tool and die makers<br />

20 Tata Steel restructures to improve competitiveness<br />

of UK operations<br />

SPECIAL: ITALY<br />

22 Looking ahead, Italy faces a difficult 2013<br />

26 Shaping the quality<br />

14<br />

0<br />

2008 2009 2010 2011 2012<br />

photo: ISSB<br />

Stable outlook<br />

British steel stockholders and service centres are<br />

looking forward to a virtual repeat of 2012 in terms<br />

of business growth and turnover.<br />

SPECIAL: STEEL DISTRIBUTION<br />

28 Steel distribution in turbulent seas<br />

32 Steel distribution in Poland<br />

34 A tool for optimizing steel stock<br />

35 Robust 4-way trucks for bright steel handling<br />

SPECIAL: TUBE & PIPE<br />

36 New solution combines electrical and hydraulic systems<br />

38 New tube production line in central Russia<br />

INDUSTRY<br />

39 Lightweight solutions for a wide range<br />

of car components<br />

27<br />

Looking ahead<br />

photo: Marcegaglia<br />

Italy faces a difficult year 2013. Nonetheless some steel<br />

companies have invested in their plants.<br />

41 New company brochures<br />

42 Steel Events<br />

43 Advertisers‘ index, preview next issue, Impressum<br />

33<br />

photo: WS<br />

Turbulent seas<br />

How can <strong>European</strong> steel distributors be successful<br />

today? This was a main question at the Central and<br />

Eastern <strong>European</strong> steel market conference 2012, hosted<br />

by the Polish steel distributors’ association PUDS.<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Advertisement


6 K Steel International<br />

Contentious issue: shale gas<br />

U. S. steel industry with firm conviction<br />

New York (bln). The prospect of a shale gas revolution in the United<br />

States that promises to empower domestic manufacturing and, along with<br />

drilling for plentiful shale oil, assures the country’s eventual energy<br />

self-sufficiency, is questioned and attacked by show business celebrities.<br />

WW K Premiering in movie houses across the<br />

country early in the New Year, the Hollywood<br />

film »Promised Land« stirs the controversy<br />

over allegedly harmful environmental consequences<br />

of massive natural gas production<br />

from the vast shale rock formations from<br />

Texas to Pennsylvania and New York. John<br />

Lennon’s widow Yoko Ono organized the<br />

»Artists Against Fracking« Lobby recruiting<br />

some 140 well-known pop stars, among<br />

them Lady Gaga, Paul McCartney, Ringo<br />

Starr, Anne Hathaway, Hugh Jackman,<br />

Julianne Moore and Gwyneth Paltrow. The<br />

question is whether the star power of wellheeled<br />

pop idols can prevent the production<br />

of shale gas in regions that have not yet<br />

cashed in on the lucrative shale gas and<br />

slow down the natural gas boom in other<br />

states, among them Pennsylvania, Texas,<br />

Colorado, and Ohio.<br />

Steel producers hope<br />

for better margins<br />

The steel industry has considerable interest<br />

in the outcome of the shale exploration<br />

debate and its consequences for pertinent<br />

policies and regulations. To begin with, the<br />

healthy demand for pipe and tube products<br />

used in the production and transportation<br />

of shale gas has been the bright spot for the<br />

steel industry during a time of slow economic<br />

recovery.<br />

But those benefits dwarf the prospect of<br />

significantly reducing the cost of producing<br />

steel by using cheap gas instead of coal to<br />

purify iron ore, the main raw material in the<br />

production of steel. While the technology<br />

for using gas instead of coal is not new, it<br />

was simply not feasible in the past when gas<br />

prices were very high. Although not all shale<br />

rich states allow natural gas drilling through<br />

the controversial hydraulic fracturing pro–<br />

cess or fracking, the price for natural gas is<br />

at an all-time low.<br />

Not surprisingly, steelmakers are poised to<br />

exploit the changing market conditions in<br />

the hope of boosting their meager profit<br />

ranges. Nucor Corporation, the financially<br />

sound mini-mill giant, leads the competition<br />

for switching as soon as possible to gas as<br />

main energy source. The company’s new<br />

750 million dollars facility in Louisiana that<br />

will use gas instead of coal is set to open<br />

later this year. Steel analysts expect Nucor to<br />

soon disclose plans for a second plant using<br />

direct-reduced iron or DRI technology. Nucor<br />

has calculated that at today’s natural gas<br />

prices, it would decrease the production<br />

costs for a tonne of steel by 20 %.<br />

Betting on the future of DRI plants and<br />

production, Nucor agreed last year to a joint<br />

venture with Encana Oil & Gas that will<br />

assure the steel company a long-term,<br />

reliable supply of its growing need for gas.<br />

Encana will expand its operations in<br />

Colorado by several thousand additional<br />

drilling wells over the next two decades.<br />

Nucor will invest 542 million dollars in the<br />

first three years of the joint venture and a<br />

total of 3.6 billion dollars over the partnership’s<br />

contracted period.<br />

Steel companies abroad consider<br />

taking advantage<br />

Foreign steel companies, too, ponder plans<br />

to take advantage of the shale gas bonanza<br />

in the United States and prices that are<br />

merely half of those two or three years ago.<br />

According to various steel analysts, India’s<br />

Essar Global Ltd. considers a DRI project in<br />

Minnesota and Australian Bluescope Steel a<br />

DRI plant in Ohio.<br />

While more than a dozen shale-rich U.S.<br />

states allow fracking technology for the<br />

drilling of shale oil, others, like Vermont and<br />

New Jersey and New York banned this<br />

method because of environmental concerns.<br />

The state of New York is considering<br />

lifting the ban and participating in the<br />

economic opportunities of the shale gas and<br />

oil sector that have already created several<br />

hundred thousand jobs in several shale-rich<br />

states. But as the decision drew close in late<br />

2012 and early this year, Yoko Ono and her<br />

stepson Sean Lennon went to the state’s<br />

capitol Albany to press their passionate antifracking<br />

campaign on the home court of the<br />

state’s legislature and governor.<br />

To begin with, they delivered 50 boxes of<br />

what they said were more than 200,000<br />

anti-drilling petitions to the state’s Department<br />

of Environmental Conservation. In an<br />

op-ed article that was published in several<br />

newspapers, Ono wrote: »My husband John<br />

Lennon and I bought a beautiful farm in<br />

rural New York more than 30 years ago. Like<br />

the rest of the state, this peaceful farming<br />

community is threatened by fracking for<br />

gas. Governor Cuomo, please don’t frack<br />

New York. Don’t allow our beautiful landscapes<br />

to be ruined, or our precious and<br />

famous clean water be dirtied.« But Ono<br />

did not just plead, she also threatened if<br />

hydraulic fracture were to be approved.<br />

»There will be class action, and the class<br />

action is going to hit everybody who is<br />

doing this«, she said. »It’s going to go on<br />

and on and on…«<br />

Will »Promised Land« change<br />

public opinion?<br />

Apart from people in the shale-rich regions,<br />

gas companies, and environmentalists,<br />

there has not been a broad knowledge<br />

about the new source of energy. Indeed,<br />

opinion polls revealed that the majority of<br />

Americans had not heard or read anything<br />

about fracking. A solid majority had no<br />

opinion or was undecided whether to<br />

support or oppose the use of controversial<br />

fracking technology to produce huge<br />

quantities of natural gas. But when told by<br />

pollsters that critics link hydraulic fracturing<br />

or fracking to »tainted water supplies<br />

and earthquakes«, nearly three of five<br />

respondents opted for the »more regulation«<br />

response category.<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


The question is whether public opinion will change significantly as<br />

a result of »Promised Land«, a Hollywood movie that has been<br />

hailed as helping a noble environ mental protection cause and<br />

condemned as misinformation and anti-fracking propa ganda.<br />

Written by and starring Matt Damon and John Krasinski, the film<br />

focuses on the ways small town landowners are pressured by clever<br />

gas company salesmen to cash in on their shale rock properties –<br />

regardless of the environmental impact on their communities.<br />

Playing more on the emotions of people in an economically deprived<br />

Pennsylvania town than on a scientific exploration of what is known<br />

about fracking technology, the movie was harshly criticized by the<br />

energy lobby. »Energy In Depth«, an industry public rations group,<br />

launched a web site »The Real Promised Land« with what are called<br />

the real stories about real Americans in shale-rich regions. And the<br />

pro-fracking Marcellus Shale Coalition ran ads in movie houses in<br />

Pennsylvania to counter »Promised Land« by inviting audi ences to<br />

get answers about the shale controversy on its web site.<br />

As »Promised Land« was shown in hundreds of movie houses<br />

across America, a documentary titled »FrackNation« had a single<br />

showing in a single New York City cinema. Written and co-directed<br />

by inves tigative journalist Pelim McAlleer, the low-cost »FrackNation«<br />

challenges the argu ments of anti-fracking environmentalists as<br />

»misinformation and misrepresentation« about the true nature of<br />

hydraulic fracturing.<br />

Ultimately, the economic self-interest of New York and other<br />

states may follow the example of the shale oil boom elsewhere and<br />

trump the concerns of environmentalists and the star power of Matt<br />

Damon and Yoko Ono and their peers.<br />

(EE 130104858) K<br />

L STEEL IN BRIEF<br />

THYSSENKRUPP NIROSTA NOW<br />

OUTOKUMPU NIROSTA<br />

Krefeld. ThyssenKrupp Nirosta GmbH is now operating under the name<br />

Outokumpu Nirosta GmbH. Outokumpu announced the completion of the<br />

Inoxum transaction and resulting merger with the former ThyssenKrupp<br />

division, which also included ThyssenKrupp Nirosta, on 28 December 2012.<br />

Adding Outokumpu to the name clearly highlights the affiliation to the<br />

Finnish company. The retention of the Nirosta name symbolises the origins<br />

of the Krefeld-based stainless steel manufacturer. The abbreviation stands<br />

for »nichtrostender Stahl« (or stainless steel in English) and was registered<br />

as a trademark over 90 years ago. »There are better market opportunities<br />

for the long-established company Nirosta within the new combined<br />

Outokumpu Group«, explained Dr. Ulrich Albrecht-Früh, President of the<br />

Stainless Coil EMEA business area. »For example, we will be able to offer<br />

our customers an even broader range of product qualities, dimensions and<br />

surfaces«, he added.<br />

Within the new group, Outokumpu Nirosta will be part of the Stainless<br />

Coil EMEA business area. This covers activities for stainless steel products<br />

in the Europe, Middle East and Africa and ferrochrome activities worldwide.<br />

(EE 130104866) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


8 K Steel International<br />

Emerging markets –<br />

the future for German SME?<br />

A critical look at China and India<br />

Frankfurt (us). As the mature economies increasingly face changing<br />

demographics and slower growth, many small- and medium sized<br />

companies (SME) are looking towards new possibilities in emerging<br />

markets. During the Dow Jones Steel Day last year, Ralf Maier, Managing<br />

Director of MADEMA group, analyzed the opportunities and threats that<br />

steel companies are about to encounter in China and India – and the<br />

impact the two countries have on Europe.<br />

WW K »China and India have nearly the<br />

same population. Apart from that, the two<br />

countries share hardly any common traits«,<br />

Maier said at the start of his presentation.<br />

He then started with a view on China and<br />

discarded the idea that we may soon be<br />

overrun by Chinese steel imports. »About<br />

90 % of Chinese steel production is needed<br />

within China to fuel further growth«, Maier<br />

stated. However, Chinese steel producers<br />

also have problems as they are facing higher<br />

costs for iron ore and energy that cannot be<br />

»<br />

We<br />

won‘t be overrun<br />

by Chinese steel.<br />

rolled over to domestic buyers. He added<br />

that the number of Chinese steel producers<br />

is bound to shrink from some 800 today to<br />

around 200 in the near future due to<br />

consolidation driven by the state.<br />

Maier also gave another reason why<br />

China as an exporter should not be feared<br />

too much. On the world market, a certain<br />

quality is automatically expected by the<br />

customer. Additionally, competition in a<br />

globalized market works mainly on price. In<br />

this respect, Chinese exports have suffered<br />

during the euro crisis, Maier explained.<br />

Furthermore, imports into the eurozone<br />

depend on exchange rates.<br />

Huge growth through Chinese<br />

urbanization<br />

Nearly half of the Chinese population, about<br />

600 million people, are already living in<br />

cities, Maier said. By 2030, the rate of<br />

urbanization in China could even reach<br />

more than 80 %. To achieve this goal, China<br />

has to double the number of cities with<br />

more than 1 million inhabitants from around<br />

120 to more than 240. New cities will be<br />

predominantly built as greenfield developments<br />

within the country, to take pressure<br />

from the agglomerations at the coastline,<br />

according to Maier‘s analysis. As urban<br />

population needs significantly more steelbased<br />

products than rural population, the<br />

growth opportunities are enormous.<br />

India is in a different league<br />

India‘s GDP growth is lower than that of<br />

China, but its population growth is much<br />

higher. As a result, the overall development<br />

in India moves at a significantly slower pace.<br />

Nevertheless, there are huge opportunities<br />

for steel-using companies, Maier said. For<br />

example, India still has the lowest per-capita<br />

use of stainless steel in the world.<br />

Although India will experience a huge<br />

urbanization wave by 2030, the country‘s<br />

problems are completely different from<br />

those in China, Maier said. India suffers<br />

from a lack of infrastructure which means<br />

that many of its metropolitan areas are<br />

facing traffic collapse. The money that India<br />

wants to spend in the next few years to<br />

address these problems will hardly be<br />

enough. In this respect, there could be room<br />

for specialized products from mature<br />

economies, for example for innovative<br />

parking systems. However, in the Indian<br />

construction market only private projects are<br />

suitable for <strong>European</strong> companies, in Maier‘s<br />

view, due to the high price sensitivity of<br />

publicly funded projects.<br />

Strategies for success<br />

Basically, <strong>European</strong> companies have a good<br />

chance to be successful in emerging markets<br />

by offering a unique product which brings<br />

added value. Although India has severe<br />

development backlogs in some parts, it is on<br />

a <strong>European</strong> level in others – for example<br />

when it comes to environmental protection<br />

for newly built plants, even though old<br />

plants are often allowed to operate below<br />

these standards. On the other hand, the<br />

country is riddled with daily power cuts, a<br />

lack of sewer systems and inappropriate<br />

fresh water supply – good chances for<br />

»<br />

The<br />

companies active in components for these<br />

kinds of infrastructure. And the demand is<br />

huge: Maier estimated the yearly public<br />

investment need for communal fresh water<br />

supply in India at some 2.5 billion euros.<br />

However, a <strong>European</strong> company should be<br />

aware that it can only catch a small fraction<br />

of the highly-priced market with high-end<br />

products. To gain access to a bigger market,<br />

companies from mature economies have to<br />

downgrade their products and to tailor<br />

them to local needs. Lower steel grades for<br />

kitchenware are one example, Maier said.<br />

Another one would be washing machines in<br />

which the water can be filled by hand – for<br />

areas where no water line is available. The<br />

market opportunities are there. »China and<br />

India will be the export drivers for steelusing<br />

SMEs in the future«, Maier drew his<br />

conclusion.<br />

www.madema-group.com<br />

/<br />

Indian elephant<br />

is not running, it is moving.<br />

(EE 130104382) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Steel International K 9<br />

Continued success in 2012<br />

Gelsenkirchen. BEPRO Blech und Profilstahl Handelsgesellschaft mbH & Co. KG, based in Gelsenkirchen,<br />

succeeded in sustaining its position in spite of the difficult market environment in 2012. The company achieved<br />

good operational results despite the current problems and uncertainties on the market.<br />

WWK In those markets that BEPRO considered<br />

posed special risks in view of their development<br />

it reduced its business activities and<br />

put security and risk procurement before<br />

further business volume.<br />

BEPRO sold its premises in Essen this year,<br />

and will concentrate its stock capacities in<br />

Gelsenkirchen-Bismarck. After completion<br />

of construction work, BEPRO will have more<br />

than 30,000 m² for storage purposes and<br />

about 900 m² of office space. Customers<br />

will therefore be offered improved operating<br />

efficiency, service, customer orientation and<br />

material availability.<br />

In order to maintain its excellent reputation<br />

as a flexible expert in steel specialities,<br />

BEPRO is planning to enlarge its product<br />

and storage range by adding additional<br />

products. Customers will be able to obtain<br />

materials from BEPRO that would otherwise<br />

be difficult, or even impossible, to find<br />

elsewhere.<br />

The economic slowdown and falling<br />

prices may result in a structural change in<br />

production or trade sectors. Nevertheless,<br />

despite the restricted economy, BEPRO<br />

remains optimistic regarding its own<br />

national and international opportunities as<br />

a medium-sized company in coming years.<br />

The company remains well positioned, and<br />

will grow further when the steel trade and<br />

market recover. BEPRO will then be able to<br />

achieve its target of selling over 100,000<br />

tonnes of steel products a year.<br />

2013 started better than expected for<br />

BEPRO. Nevertheless, it is currently impossible<br />

to predict future developments.<br />

Increasing financial insecurities, the euro<br />

crisis, poor steel demand, insufficient prices<br />

and a flagging worldwide economy could<br />

lead to poor prospects.<br />

/<br />

BEPRO Blech und Profilstahl<br />

Handelsges. mbH & Co. KG<br />

Ahlmannshof 5<br />

45889 Gelsenkirchen<br />

Germany<br />

phone +49 209 98251-10<br />

www.bepro.de<br />

(EE 130104880) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


10 K Steel International<br />

Russian steel producers react<br />

to market changes<br />

By Vladimir Kovalev (VK)<br />

In reaction to falling steel demand on international markets, and<br />

particularly in Europe, Russian producers started suspending their <strong>European</strong><br />

production facilities at the end of last year, a trend that is likely to persist<br />

during 2013 given the continuing economic difficulties in the region.<br />

WW K At the same time, closure of selected<br />

steel production lines in Europe stimulates<br />

sales and maintains steel prices on the<br />

<strong>European</strong> markets, creating additional<br />

advantages for Russian producers, such as<br />

Severstal, whose attention could shift to<br />

Asian markets, currently gaining in<br />

importance.<br />

The Evraz Group was one of the first to<br />

cut back after suspending steel production<br />

at its Vitkovice steelworks in the Czech<br />

Republic in December 2012 for about two<br />

weeks, a decision that came shortly after<br />

Mechel stopped selected production lines in<br />

Romania in November. The market subsequently<br />

expected Russia’s NLMK to close<br />

its Belgian site at La Louviere after the<br />

company announced that it was involved in<br />

negotiations with local labour unions on<br />

proposals to restructure the plant.<br />

Evraz Vitkovice Steel (EVS) is the biggest<br />

steel producer in the Czech Republic. »We<br />

took the step in order to optimise steel<br />

stocks in response to low demand«,<br />

according to a statement in December by<br />

Yakomir Kirisica, head of EVS, quoted in the<br />

Russian business journal Expert.ru.<br />

The operations of Evraz’s plant in the<br />

Czech Republic have been affected by a<br />

number of factors, including lower demand.<br />

In late December, the company announced<br />

that it had reached an agreement with<br />

ArcelorMittal to resume deliveries of pig<br />

iron, enabling the site to resume production<br />

during the first half of January. This appears<br />

to have been the main reason for having<br />

suspended production. The plant is one of<br />

Europe’s biggest producers of thick rolled<br />

steel and the largest in the Czech Republic.<br />

»All EVS operations are running now«,<br />

Krisica told »<strong>stahlmarkt</strong>« shortly after the<br />

plant resumed operations in January. »The<br />

reason for the restart was an agreement on<br />

the supply of pig iron by ArcelorMittal<br />

Ostrava (AMO) for the period of January and<br />

February 2013.«<br />

At the same time, activity at the plant in<br />

Czech Republic could still be affected by<br />

complications over the receipt of the carbon<br />

credits required for operation from January<br />

1, 2013, according to remarks by Dimitry<br />

Scuka, the EVS Chairman, sent to »<strong>stahlmarkt</strong>«<br />

by the company’s press service.<br />

»Based on all the information available, the<br />

carbon credits have still not been received<br />

due to the refusal of individual EU institutions<br />

that insist on their specific way of<br />

solving the issue. The result, unfortunately,<br />

is that we are not entitled to what all the<br />

other companies are«, he said.<br />

Meanwhile, the general tendency for 2013<br />

is still considered bleak given the forecast by<br />

the World Steel Association regarding<br />

demand in Europe. International demand<br />

grew about 2.1 % in 2012, which is less than<br />

in 2011 when it was about 6.2 %. At the<br />

same time, <strong>European</strong> demand fell by about<br />

5.6 % compared to the previous year – to<br />

about 145 million tonnes – and would grow<br />

by only 2.4 % in 2013, according to statistics<br />

quoted by the daily. Most of reduction is<br />

expected to affect Italy and Spain.<br />

»We think that steel demand in Spain and<br />

Italy [in 2012] fell by 11.9 % and 12.6 %<br />

respectively. Germany, Europe’s most stable<br />

country, also experienced a reduction of<br />

4.7 % in 2012. In 2013 the situation should<br />

improve and steel demand in the EU-27<br />

could improve by 2.4 %«, the Russian<br />

analytical agency MinProm quoted Edwin<br />

Basson, Director General of the World Steel<br />

Association.<br />

Striving for asset optimization<br />

In conditions when some steel producers are<br />

starting to optimise their <strong>European</strong> assets<br />

by cutting production, others are taking<br />

advantage of this by filling the emptying<br />

niche. »The situation in the first quarter of<br />

2013 looks better than in the fourth quarter<br />

of 2012«, Vladimir Zaluzhsky, a Severstal<br />

spokesperson told »<strong>stahlmarkt</strong>«. Prices for<br />

products continue to rise in many regions of<br />

the world, especially in Asia. This is linked to<br />

the increase in iron ore prices and another<br />

cycle of restocking in China and South-East<br />

Asia, during which traders are buying up<br />

metal in advance for the spring construction<br />

season.«<br />

»Closure of <strong>European</strong> capacities has<br />

become an additional factor supporting<br />

higher steel prices. Thus positive dynamism<br />

will continue in the first quarter and,<br />

probably, in the second, after which there<br />

could be a correction on the market. But in<br />

general we do not expect a negative<br />

scenario«, Zaluzhsky added.<br />

NLMK’s Belgian plant in La Louviere is<br />

expected to face losses of up to 100 million<br />

euros as a result of its activities in 2012,<br />

according to sources in the industry quoted<br />

by the business newspaper RBC Daily. At the<br />

end of the year, the plant had to hold<br />

negotiations on the restructuring of its<br />

production lines in order to reduce the high<br />

production costs, which could involve<br />

significant redundancies at the plant in<br />

order to increase financial efficiency. The<br />

plant’s annual output is estimated at 2.4<br />

million tonnes.<br />

The situation at NLMK’s Belgian site is still<br />

not clear for the first quarter of 2013 and<br />

restructuring is on agenda, while the plant<br />

continues operating. »We are still in<br />

negotiations with the unions«, Caroline<br />

Marlair, La Louviere’s spokesperson told<br />

»<strong>stahlmarkt</strong>«.<br />

Veering from Europe to China?<br />

In a worse-case scenario, operators of metal<br />

plants in Europe could decide to close down<br />

even more production lines in 2013, as<br />

happened when the original economic crisis<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Steel International K 11<br />

hit Europe in 2008, according to Moscowbased<br />

analysts monitoring the situation on<br />

the <strong>European</strong> steel market. »We don’t<br />

expect the economic situation in Europe to<br />

improve within the next few months. This is<br />

based on industrial production statistics<br />

which indicate that the volume of industrial<br />

contracts fell by 3.5 % in 2012, compared<br />

to 2011. In practice, the eurozone is<br />

currently in recession. GDP is falling and it is<br />

still not clear when it will recover from the<br />

current position. Germany, which is an<br />

economic locomotive for Europe, could not<br />

drag the eurozone out of its economic crisis<br />

by itself«, Roman Tkachuk, an analyst at the<br />

Moscow-based Nord Capital investment<br />

company told »<strong>stahlmarkt</strong>«.<br />

Judging by the fact that the steel industry<br />

is traditionally more sensitive to economic<br />

slowdowns in crisis periods, steel demand is<br />

expected to maintain its low levels, the<br />

analyst said, and added that in such a<br />

situation: »it could not be ruled out that<br />

metallurgical companies would go for<br />

suspending blast furnaces, as was the case<br />

in 2008. This would be radical, because<br />

restarting a suspended blast furnace is a<br />

very expensive process.«<br />

The current negative trends in Europe<br />

could force Russian steel operators to<br />

redirect their attention to other markets. »A<br />

more positive scenario for Russian companies<br />

could be to reorient themselves<br />

towards the Chinese market. In late 2012,<br />

this market showed signs of recovery when,<br />

in December and January 2013, demand for<br />

steel products grew – the price of pig iron<br />

has gone up by 80 % during the last four<br />

months«, the analyst said, adding that some<br />

major Russian producers expect international<br />

growth of steel demand to be about 3 % in<br />

2013. (EE 130104823) K<br />

i<br />

The following article can<br />

be downloaded from the<br />

»<strong>stahlmarkt</strong>« website.<br />

Siberian steelmaker reorganises<br />

its production facilities<br />

The OAO Novosibirsk Metallurgical Plant<br />

(NMZ Kuzmina) intends to reorganise the<br />

production of welded medium-diameter tubes<br />

within the next two years with investments of<br />

about 750 million roubles (20 million euros).<br />

Read the article via QR<br />

Code. Go straight to the<br />

PDF using this QR Code<br />

on your smartphone or<br />

via our website.<br />

/www.<strong>stahlmarkt</strong>-magazin.de/<br />

crossmedia<br />

L STEEL IN BRIEF<br />

ENERGY-INTENSIVE INDUSTRIES<br />

WARN AGAINST INCREASE OF<br />

ENERGY COSTS<br />

Brussels. The Alliance of Energy-Intensive<br />

Industries has urged the <strong>European</strong> Commission<br />

to abandon its plans to amend the Emission<br />

Trading System (ETS) in a way that would<br />

increase energy costs for private and industrial<br />

consumers in Europe. In the face of recent plant<br />

closures, restructuring and lay-offs throughout<br />

the whole value chain of <strong>European</strong> manufacturing<br />

industry, the EU should avoid all political<br />

measures that would add to the cost burden of<br />

its economic base, the Alliance said.<br />

The <strong>European</strong> industry has been struggling for<br />

almost four years with recession conditions<br />

brought about by the financial and economic<br />

crisis. Unemployment has climbed to 25.3 million<br />

persons or 10.4 % in the EU 27 in September<br />

2012, a historically high level. Recent incidents<br />

in the manufacturing industries in France,<br />

Belgium or the UK represent but a few, though<br />

particularly striking examples of the critical state<br />

of Europe’s economy. The Alliance said that<br />

investments were much needed to reinvigorate<br />

industrial production and reestablish growth.<br />

The Commission‘s proposals now on the table<br />

to artificially increase the ETS carbon price would<br />

further undermine the competitiveness of the<br />

<strong>European</strong> manufacturing industry, in the view of<br />

the Alliance. According to the current planning,<br />

soaring carbon costs will be passed on by the<br />

power sector through higher power prices.<br />

However, the recent Industrial Policy Communication<br />

has highlighted that electricity costs in the<br />

EU are already twice as high as in competing<br />

regions such as the US, Korea or Canada.<br />

Increasing ETS costs in the EU would thus further<br />

add to this competitive disadvantage, the<br />

Alliance fears.<br />

(EE 130104549) K<br />

FURNACE FOR TATA STEEL<br />

SPECIALITY STEELS<br />

Düsseldorf. Tata Steel Speciality Steels, UK,<br />

has chosen SMS Mevac, Germany, to design a<br />

VIM X-eed ® vacuum induction melting furnace<br />

for its Stocksbridge site. The facility will produce<br />

high-purity steels and specialist alloys for the<br />

aerospace industry, a sector where Tata Steel is<br />

already established as a leading supplier. The<br />

project is currently in the design phase and is<br />

intended to go into production in 2014, pending<br />

final capital approval.<br />

(EE 130104722) K<br />

SMS CONCAST AND SMS MEER<br />

TO BUILD GREEN FIELD MINIMILL<br />

Düsseldorf. SIMEC Group from Apizaco,<br />

Mexico, has placed an order with SMS Concast,<br />

Switzerland, and SMS Meer, Germany, for a<br />

minimill. The plant for »GV do Brazil« will be<br />

tailored to the customer‘s requirements and<br />

offers high production flexibility. The minimill is<br />

to be erected near Pindamonhangaba in the<br />

Brazilian State of São Paulo. SMS Concast will<br />

supply the steelworks for the minimill, and SMS<br />

Meer the adjacent bar and wire rod mill. The<br />

plant is designed for an annual production<br />

capacity of 520,000 tonnes of billets and<br />

400,000 tonnes of bars and wire rod, which can<br />

be expanded to 560,000 tonnes per year.<br />

(EE 130104593) K<br />

MODERNISATION PROJECT<br />

AT ZENTRALKOKEREI SAAR<br />

COMPLETED<br />

Dillingen. Work has now been completed on<br />

the modernisation project of Zentralkokerei Saar<br />

GmbH (ZKS), a joint subsidiary of AG der Dillinger<br />

Hüttenwerke and Saarstahl AG. Optimisation of<br />

coke production and the reduction of emissions<br />

were the essential targets of the project that<br />

started in 2007. Following the construction of the<br />

new battery 3 and its commissioning in 2010, the<br />

totally renovated battery 1 has now also been<br />

successfully restarted. The modernisation of the<br />

batteries included the incorporation of the very<br />

latest pollution prevention technologies: a new<br />

charging-gas capture system and the installation<br />

of independent pressure control in each individual<br />

coke oven chamber have achieved a<br />

notable reduction in emissions.<br />

www.stahl-holding-saar.de<br />

/<br />

(EE 130104627) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


12 K Steel International<br />

The steel industry:<br />

China continues to set the pace<br />

Is ecological sustainability a successful strategy for steel producers?<br />

Düsseldorf (mh). The future of the steel industry is currently plagued by<br />

many uncertainties. Producers face major challenges despite enormous<br />

developments in recent decades. During the Second International Steel<br />

Trade Day at EUROMETAL, engineer Pierre Mangers MBA – Metals &<br />

Mining Leader at Ernst & Young – described the options available for<br />

producers to react to the changing market situation.<br />

WW K Considered on a global level, the<br />

material steel has been enjoying a boom<br />

for many years. Driven by the demand<br />

generated by major economies, such as<br />

China, India or Brazil, ever-greater quantities<br />

of steel are being produced. However, steel<br />

producers in the classic industrial nations,<br />

e.g. in Europe, Japan or the USA, face major<br />

challenges. No significant growth rates can<br />

be expected from their own domestic<br />

markets in the foreseeable future. In<br />

addition, growing demand has led to rising<br />

raw material and energy costs. With<br />

demand fluctuating, however, it is difficult<br />

to pass on these increased costs to customers,<br />

according to the Ernst & Young<br />

expert Mangers. This puts pressure on the<br />

margins.<br />

Profits under pressure<br />

The situation would not be so bad if it were<br />

only higher raw material and energy costs<br />

that affected the margins. Profits, however,<br />

are under pressure from a variety of sources,<br />

Mangers adds: lower steel prices, rising<br />

employment costs, and investor interests<br />

make life difficult for steel producers. It is<br />

also becoming increasingly hard to make<br />

stable predictions about future market<br />

... how sustainability leaders are responding to the challenge<br />

Innovating in energy<br />

effective products<br />

Sharing corporate<br />

responsibility values<br />

Customer<br />

Reach<br />

Prioritizing regional<br />

to global markets<br />

Enhancing exibility<br />

in supply chain<br />

Enhancing market<br />

volatility intelligence<br />

Increasing collaboration<br />

with external partners<br />

Operational<br />

Agility<br />

Leaders of<br />

Sustainable<br />

Steel<br />

Cost<br />

Competitiveness<br />

Sustaining material and<br />

energy effectiveness<br />

Implementing<br />

Lean Six Sigma<br />

Implementing lowcarbon<br />

cost sourcing<br />

Identifying and managing<br />

sustainability risks<br />

Stakeholder<br />

<br />

Improving transparency and frequency of<br />

nancial and non-nancial reporting on<br />

performance with stakeholders<br />

(EE 130104840/1)<br />

Anticipating regulatory<br />

changes<br />

Source: Ernst & Young Metals & Mining Analysis<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Steel International K 13<br />

developments because the markets are<br />

simply changing too quickly. Thus stable<br />

planning – a necessary prerequisite for the<br />

long-term investments in large production<br />

plants typical in the steel industry – is<br />

becoming increasingly difficult to draw up<br />

and, above all, implement. Therefore, in<br />

Pierre Mangers’ opinion, it is becoming less<br />

and less important for steel companies to<br />

come up with highly detailed strategies, but<br />

instead to prepare for a variety of scenarios<br />

with extreme flexibility.<br />

The risk of overcapacities<br />

China is still of prime importance for the<br />

development of the worldwide steel industry,<br />

according to Mangers. The industrialisation<br />

there has had, and continues to have,<br />

enormous effects on the development of<br />

many industrial sectors worldwide,<br />

particularly the steel industry. China will also<br />

set the pace for future development.<br />

Steel demand in China will probably reach<br />

its peak in about seven years, in around<br />

2020. Chinese industrialisation will have<br />

reached its zenith then – a turning point<br />

that will have a major effect on the global<br />

steel industry. But on the way there, China’s<br />

already lower growth rates represent a<br />

major challenge for the steel industry.<br />

Overcapacities: the enormous demand for<br />

steel in China has led to massive ›green field‹<br />

investments in a range of large production<br />

capacities. Moreover, many existing production<br />

plants have been modernised. Obsolete<br />

capacities, however, have not been taken<br />

off the market. But falling steel use is<br />

releasing production capacities that are<br />

used for exports, if they are not closed<br />

down. According to Mangers, overcapacities<br />

in China amounted to about 30 % of<br />

demand in 2011. The imbalance between<br />

supply and demand will increase further if<br />

the Chinese government does not introduce<br />

clear regulations – and it is extraordinarily<br />

difficult to predict what that would mean<br />

for China’s various export markets<br />

worldwide, Mangers continues.<br />

Ecological and economic<br />

interests converge<br />

Energy and raw material costs decide on the<br />

profitability of production throughout the<br />

steel industry. In this situation the industry’s<br />

economic interests come up against<br />

ecological interests regarding the emission<br />

of lower quantities of greenhouse gases.<br />

Whereby, as one of the important energyintensive<br />

industries, the steel industry plays<br />

a decisive role. In China, for example, the<br />

steel industry is responsible for about 20 %<br />

of global energy consumption and roughly<br />

30 % of the world’s output of CO 2<br />

,<br />

according to the International Energy<br />

Agency, Mangers adds. Further political<br />

measures to reduce emissions can be<br />

expected in future. Even if regulation leads<br />

to increased burdens for steel-producing<br />

companies, the lower consump tion of<br />

»<br />

There<br />

is no planning security<br />

in the current market situation,<br />

but the freedom to plan<br />

for the future by means<br />

of scenarios – in order to be<br />

better able to limit the<br />

uncertainty of working<br />

hypotheses.<br />

Pierre Mangers<br />

energy would result in reduced costs. This<br />

would be the case, according to Mangers,<br />

when energy costs make up more than onethird<br />

of a company’s total costs. China, for<br />

example, could reduce its CO 2<br />

emissions<br />

by about 300 million tonnes by 2020 by<br />

installing modern production capacities<br />

designed for sustainability.<br />

Sustainable steel production<br />

as a strategic option<br />

In technical terms, there are various<br />

approaches for reducing emissions of<br />

greenhouse gases. Many modifications that<br />

cut greenhouse gas emissions could be<br />

made along the entire value-creation chain<br />

from producers to traders. While in Europe<br />

the minimisation potentials in production<br />

are relatively small – because state-of-theart<br />

plants are already being operated – the<br />

production side in other countries and<br />

regions, such as China, Russia and South<br />

America, offer great potentials.<br />

How does one successfully compete on<br />

the markets, in this situation, with steel<br />

production that is sustainable from both the<br />

ecological and economic points of view?<br />

Mangers advises examining the strategies<br />

used by other industries (e.g. the oil industry)<br />

that face, or have faced, similar challenges.<br />

Four strategic areas play a special role:<br />

Firstly, the customer base: The customer<br />

base is increased by innovations in energyefficient<br />

products, the preference of regional<br />

over global markets, and the successfully<br />

communicated (and shared) corporate<br />

responsibility for sustainable production.<br />

Secondly, operational agility: The only<br />

thing that can help combat increasing<br />

volatility is to function more flexibly and be<br />

able to adapt seamlessly to unforeseen<br />

events. This involves new concepts for<br />

organising the work steps in the valuecreation<br />

chain so that rapid adaptations to<br />

changing conditions are possible. New<br />

analytical methods for obtaining reliable<br />

information on volatile markets also play a<br />

role, as does greater collaboration with<br />

external partners.<br />

Thirdly, cost competitiveness: This involves<br />

material and energy efficiency as well as<br />

new management techniques already<br />

exploited in automobile and aircraft manufacture:<br />

lean manufacturing and Six Sigma.<br />

In addition, Pierre Mangers recommends a<br />

rethink regarding the low-cost-country<br />

sourcing approach and the gradual introduction<br />

of procurement strategies that are<br />

more CO 2<br />

-neutral.<br />

Fourthly, stakeholder confidence: Greater<br />

external transparency regarding corporate<br />

performance and particular attention to<br />

potential regulatory changes ensure and<br />

improve the position of the company vis-a-vis<br />

important external interest groups<br />

What strategies are therefore available to<br />

steel producers for successfully facing the<br />

future? Above all, the volatility of the<br />

markets should be taken into account,<br />

according to Mangers. At least until 2020,<br />

because then the saturated steel demand in<br />

China could lead to a turning point for the<br />

steel industry worldwide and dampen the<br />

heavy fluctuations in the markets. According<br />

to Mangers, the second important area is<br />

sustainable production, which steel producers<br />

are almost forced into as a result of<br />

rising energy and raw material costs.<br />

(EE 130104840) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


14 K Special: Northern Europe / UK<br />

Stable outlook<br />

British steel stockholders are facing 2013 with confidence<br />

In a changing supply scene, where an increasing amount of steel is<br />

imported into the UK, British steel stockholders and service centres are<br />

looking forward to a virtual repeat of 2012 in terms of business growth and<br />

turnover. »<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong>« visited the National Association of<br />

Steel Stockholders (NASS) and met Director General, Peter Corfield.<br />

(photo: NASS)<br />

Peter Corfield<br />

WW Stahlmarkt: When we spoke last in<br />

summer 2011, you quite rightly predicted a<br />

low but sustained growth for the UK steel<br />

trade sector. In the recent NASS News Update<br />

there were some cautiously positive views<br />

about the UK economy. Recent government<br />

figures bear this out, but will this trend<br />

continue and will it be uniform across the<br />

sector?<br />

WW Peter Corfield: In 2013, I think the<br />

automotive sector will continue to be quite<br />

strong. One of the advantages that the<br />

automotive sector in the UK has is that the<br />

vehicles produced are on a single model<br />

UK Quarterly Balance of Trade<br />

in million tonnes<br />

3<br />

2<br />

1<br />

0<br />

(EE 130104861/1)<br />

All steel products Q3 2008 – Q2 2012<br />

Exports<br />

production site basis. i.e. there is not<br />

another factory in Europe that is building<br />

the same model. These plants therefore rely<br />

on the demand for their specific product<br />

across Europe to absorb their output. The<br />

markets either want or don‘t want specific<br />

models. The models made in the UK seem<br />

to be popular, especially Jaguar and Land<br />

Rover, however all models being produced<br />

within the UK seem to have a positive<br />

response from the marketplace.<br />

You only have to look at the number of<br />

vehicle registrations in the UK and how<br />

much is exported to mainland Europe and<br />

Imports<br />

2.2 2.1<br />

1.8<br />

1.9<br />

1.8 2.0 2.0<br />

2.0 2.0<br />

1.8<br />

1.6 1.7 1.6 1.6 1.7 1.6<br />

1.7<br />

1.5 1.5<br />

1.5<br />

1.5<br />

1.4<br />

1.3 1.4 1.4<br />

1.4<br />

1.3<br />

1.3 1.3<br />

1.0 1.1<br />

1.0<br />

2008 2009 2010 2011 2012<br />

Source: ISSB<br />

other parts of the world – I think that the<br />

automotive sector is now approaching<br />

historical highs in terms of production units<br />

within the UK. And that is in contrast to<br />

what‘s happening elsewhere in Europe.<br />

Some parts of Europe are reporting that<br />

their automotive sector is not strong,<br />

because they are experiencing reduced<br />

demand. It is also important to note that the<br />

UK has started from a lower point and<br />

continues to grow. So we‘ve got the<br />

opposite sides of the spectrum here.<br />

WW But there will be some flexibility, as in the<br />

case of Honda, where the manufacturer is<br />

slowing down a facility. That‘s of course a<br />

drawback of the situation that if you are the<br />

maker of one specific model, you will also<br />

have to bear it if that model does not sell well.<br />

WW Yes, you will, if the model does not sell.<br />

Honda have always tried to align their<br />

production to supply and demand. They are<br />

usually quite good at forecasting.<br />

The next major sector, construction, has<br />

had a lot of publicity and media attention in<br />

the year. It has stalled, there‘s no doubt<br />

about it – obviously the consequences of<br />

what‘s happened as a result of government<br />

cuts has impacted. Nonetheless there was<br />

still something in excess of 900,000 tonnes<br />

of steel consumed in construction in 2012.<br />

And there is no reason why that situation<br />

should change in 2013. In fact, the latest<br />

forecast is that it is likely to be even better.<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Northern Europe / UK K 15<br />

UK: crude steel production 2001 – 2012<br />

16<br />

14<br />

13,54<br />

13,17 13,77 13,24 13,87 14,32 13,52<br />

in million tonnes<br />

12<br />

10<br />

8<br />

6<br />

11,67<br />

10,08<br />

9,71 9,48 9,70<br />

4<br />

2<br />

0<br />

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012<br />

(EE 130104861/2)<br />

Source: worldsteel<br />

WW Is this influenced by the easier planning<br />

and execution of domestic house building?<br />

WW Domestic house building has an impact<br />

on steel, but it‘s not as great as industrial,<br />

commercial, retail, or in fact infrastructure<br />

development. Within domestic build, the<br />

main use of steel is on what we call »fitout«,<br />

i.e. components for ceilings, partition<br />

walls or purlins, which are all derived from<br />

flat products. Steel construction is normally<br />

a large consumer of long products which<br />

are processed by steel fabricators. There<br />

have been some casualties amongst the<br />

fabricators and it is still an area which is<br />

considered with concern by the risk<br />

underwriters. Having said that, there are<br />

also one or two success stories in there, with<br />

fabricators who have continued to flourish.<br />

But the important thing within construction<br />

is that there is relatively stable activity. And<br />

surprisingly, in the last couple of months,<br />

there has been a revival of some projects<br />

and increased activity.<br />

WW Another important steel sector involves<br />

the manufacture of earthmoving equipment,<br />

the »yellow goods sector«, as it is generally<br />

referred to. Demand has been good for the<br />

first three quarters of 2012. In the final<br />

quarter there was probably a similar situation<br />

to Honda, i.e. there was an alignment of<br />

units produced to meet demand. The latest<br />

view of 2013 is that it will replicate 2012. So<br />

it is not a case of the last quarter of 2012<br />

becoming the basis for expectations in 2013.<br />

These yellow goods, are they going to<br />

markets outside Europe?<br />

WW They‘re mainly going to the rest of the<br />

world markets. All major manufacturers are<br />

going to these markets and setting up<br />

appropriate facilities. JCB with their headquarters<br />

in the UK, are now operating plants<br />

in Brazil, China and India. And there are<br />

others that are pursuing similar activities,<br />

and they are supplying the goods.<br />

WW So whatever happens in the Eurozone<br />

will be relevant to them, but not decide their<br />

business?<br />

WW The majority of their activity is outside<br />

Europe and will increasingly be that way.<br />

There is no doubt about it. And obviously,<br />

with that in mind, hopefully they will<br />

maintain their plants in the UK for their<br />

<strong>European</strong> requirements.<br />

The other sector worthy of note at the<br />

present time is utilities, incorporating<br />

energy, power and gas production. This is a<br />

key area for our plate distributors/profilers,<br />

who are telling us that projects which were<br />

frozen or on hold are suddenly coming<br />

to fruition. These projects do not use<br />

commodity plate, but utilise specialised<br />

plate that has an extended lead time, and<br />

this has created some pressure in terms of<br />

availability. So there‘s no doubt that in that<br />

area of specialised plate, the suppliers are<br />

having quite a reasonable time.<br />

WW Will this plate come mostly from abroad?<br />

WW The sourcing of these higher quality<br />

grade plates is likely to be from Europe as<br />

opposed to the rest of the world. Some of<br />

these requirements will obviously be met by<br />

UK supply.<br />

In this context it is also worth noting that<br />

in the manufacturing supply chain the closer<br />

firms are to making things, the busier they<br />

appear to be. The majority of UK manufacturers<br />

have filled their capacities to<br />

acceptable levels throughout 2012. There<br />

are no indications of reduced activity in the<br />

short term, in fact I would argue that more<br />

and more companies are becoming very<br />

selective in the work they are undertaking<br />

to ensure they are in a position to optimise<br />

profitability from the capacity they have<br />

available.<br />

WW One of the trends in recent market<br />

figures was the confidence amongst steel<br />

stockholders who re-built the stocks which<br />

had been depleted in the difficult years up<br />

to 2011. Will the steel trade allow its stocks<br />

to run down again in view of the uncertain<br />

outlook, particularly in the Eurozone?<br />

WW I think that the economic outlook in the<br />

Eurozone is a factor, although steel distribution<br />

centres in mainland Europe are<br />

probably aligning their steel stocks in terms<br />

of supply and demand, and controlling<br />

inventory levels based on stock days. In the<br />

past mainland <strong>European</strong> service centres<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


16 K Special: Northern Europe / UK<br />

have operated with higher levels of stock or<br />

stock days. They are now adopting a similar<br />

stance to that taken in the UK whereby<br />

stock levels have been significantly reduced<br />

and maintained at levels which are considered<br />

to be sufficient. People are working<br />

more efficiently within their range. They are<br />

not speculating, and the majority of the<br />

material supplied to the market is now from<br />

imports, not from domestic supply. These<br />

imports tend to be more <strong>European</strong> as<br />

opposed to from the rest of the world,<br />

because availability, competitive pricing and<br />

in some cases, quality, is the deciding factor.<br />

So, what does it mean in practice? Steel<br />

service centres are operating with stock<br />

levels that may have some gaps within their<br />

range, but in the main they are operating<br />

with reduced levels of inventory. The key is<br />

that material is readily available. As a service<br />

centre you might therefore ask yourself:<br />

»Why do I want to keep this stock? It‘s<br />

taking up space, it‘s costing me money. I can<br />

buy it when I need it and in the amounts<br />

that I need and, in the main, I can bring it in<br />

from the UK or Europe at short notice.«<br />

WW Going by the ISSB‘s statistics, the ratio of<br />

imported to exported steel products has<br />

changed considerably. Imports of steel<br />

products are now much higher – more or less<br />

the same as in 2008 – while exports have<br />

consistently shrunk by about a quarter over<br />

the same period. Is the UK becoming even<br />

more dependent on foreign steel supplies?<br />

WW In the last four years imports of steel into<br />

the UK have gone from the mid 40 to the<br />

mid 50 % of supply. Overall, consumption<br />

is approximately 10 million tonnes per<br />

annum, of which NASS core products<br />

represent circa 6 million tonnes. Yes, imports<br />

have steadily increased and are likely to<br />

remain the major supply route to the UK<br />

steel market for the foreseeable future.<br />

WW Is another reason for imports increasing<br />

in the UK the fact that material from the rest<br />

of the world is being supplied to the UK<br />

market?<br />

WW Yes, steel does come from rest of world<br />

markets, with China, India, Russia and<br />

Turkey being the major sources of supply.<br />

There has however been a significant swing<br />

from RoW supply to <strong>European</strong> supply due to<br />

these sources normally involving longer lead<br />

NASS: new website<br />

NASS recently modernised its website www.nass.<br />

org.uk, which now offers an impressive range of<br />

facilities, including a secure members‘ area, a<br />

calendar of events and, of course, the extensive<br />

News Update.<br />

<br />

become the portal for our communication, with<br />

both the membership and the external world. We<br />

would like our website to be user-friendly, active<br />

and provide interest for everyone involved in steel<br />

processing and distribution. In terms of where we<br />

times, and the biggest danger with shipping<br />

any great volume is that by the time the<br />

steel arrives in the UK, it is no longer at the<br />

right price. Steel service centres may have<br />

thought they had concluded an advantageous<br />

transaction when ordering the steel,<br />

but upon arrival that might no longer be the<br />

case. That is why there is less being speculated<br />

and purchased from RoW markets.<br />

WW On the list of NASS members, there are<br />

now ten large groups active nationwide<br />

which seem to dominate the market. Is there<br />

a trend towards consolidation in the sector<br />

or could this be a situation where the large<br />

groups cover a wide range of general products,<br />

whereas the smaller companies act<br />

more like »boutique« suppliers with highly<br />

specialised products and services?<br />

WW There is no generic way of looking at it,<br />

but the last two major changes in the UK<br />

were Barclay & Mathieson being acquired by<br />

Stemcor, and Austin Truman exiting the<br />

heavy sections market when the Murray<br />

Group was re-structured. However, there<br />

have not been any casualties, the sector<br />

remains quite robust and this is confirmed in<br />

our discussions with the risk underwriters,<br />

who have developed an appetite for the<br />

sector. Yes, the bigger groups have got both<br />

specialisation and also have the opportunity<br />

to serve local markets. There have been<br />

announcements by some of the major<br />

groups to close or rationalise sites. They are<br />

undertaking these restructuring activities<br />

over a specified time scale. There is no doubt<br />

that there will always be a place for the small<br />

niche suppliers, the local service centres, and<br />

in actual fact, I think that this sector will<br />

<br />

facility is paramount as we seek to provide more<br />

links for members. We are already involved with<br />

the CBI, the Chamber of Commerce and the<br />

Health & Safety Executive. We want these links to<br />

create a knowledge share for both members<br />

<br />

continues to grow and will feature prominently to<br />

visitors to the website, whereby both professional<br />

and social activities can be clearly seen.«<br />

grow. The larger distributors are all now<br />

actively processing and distributing on a<br />

»hub and spoke« basis, whereby they have<br />

major facilities with smaller units feeding off<br />

them. Customers will then either buy directly<br />

from the central hub or buy locally,<br />

depending on what the products are, the<br />

frequency with which they‘re needed, the<br />

time restraint and so on. I don‘t think that<br />

there will be much further amalgam ation.<br />

In conclusion, I think that the existing<br />

groups are likely to stay in place. It may be<br />

that they acquire or that they rationalise, but<br />

that will be down to their own philosophy<br />

and their geographical approach to the UK<br />

market. In the long term, however, you<br />

might have fewer medium-sized groups<br />

going forward as the emphasis will be on<br />

having very large or small facilities processing<br />

and distributing steel products.<br />

WW One left-over from the financial crisis in<br />

2008 was the tight credit supply to the steel<br />

trade. NASS counteracted that by trying to<br />

improve mutual understanding between the<br />

stockholders, government and the finance<br />

industry. Have you been able to alleviate the<br />

situation, or are there, by now, alternative<br />

solutions?<br />

WW Discussions are on-going with all<br />

interested parties. NASS is delighted to have<br />

all the major players in the risk management<br />

sector as Associate Members, with whom we<br />

have regular dialogue and this has obviously<br />

improved communications and understanding.<br />

That is of particular relevance given<br />

that 2012 has probably produced a number<br />

of financial returns which were disappointing<br />

and gave potential cause for concern. If you<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Northern Europe / UK K 17<br />

go back in time, this would probably have started a ripple of credit<br />

withdrawals or led to a tightening of credit limits in the process. I<br />

think the regular dialogue and better understanding of the business<br />

scenario has certainly helped that situation. In addition we also meet<br />

on a quarterly basis with the Bank of England, whereby we represent<br />

the steel service centre sector and, in turn, ensure everyone has a<br />

better appreciation of what NASS members represent.<br />

In addition to all the things we have spoken about so far, another<br />

area NASS will be focusing on is that of aspects of the environment<br />

and climate change. In the past many people have not considered<br />

it relevant, but if they review the costs involved relating to the<br />

carbon tax they pay on their utility bills, then they might realise that<br />

there is an issue. So, one of our main objectives for 2013 will be to<br />

review the eligibility of our members to be embraced by umbrella<br />

arrangements which can significantly reduce carbon tax costs. This<br />

will not apply to all our membership, but we seek to maximise where<br />

opportunity presents.<br />

Finally, and with the above in mind, it is our intention to revamp<br />

our current motto »Safer Steel«. This has served the purpose of<br />

raising the awareness of handling and processing steel in a safe<br />

manner. In view of the advent of demand on the environment and<br />

the impact of recycling, climate change and sustainability, NASS is<br />

considering the introduction of a new motto which embraces these<br />

concepts. Hence a new motto of »Safe and Sustainable Steel« is<br />

currently under consideration by the gov erning body of NASS,<br />

namely the National Council. It is anticipated that the revised motto<br />

will be finalised and agreed at the AGM to be held in July 2013.<br />

Mr. Corfield, many thanks for answering these questions.<br />

(EE 130104861) K<br />

i<br />

The following article can be downloaded<br />

from the »<strong>stahlmarkt</strong>« website.<br />

Looking for a recovery<br />

After zero growth in 2012, the UK economy is expected to catch up<br />

again in the current year.<br />

Read the article via QR Code.<br />

Go straight to the PDF using<br />

this QR Code on your smartphone<br />

or via our website.<br />

/www.<strong>stahlmarkt</strong>-magazin.de/crossmedia<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


18 K Special: Northern Europe / UK<br />

New solution for mould, tool and die makers<br />

Vero Software release VISI 20 with many new features<br />

Cheltenham. Vero Software, a leading provider of CAD/CAM/CAE<br />

solutions for the tooling industry, has announced the release of their<br />

Mould & Die focused product VISI 20. Version 20 is a substantial release<br />

introducing many new features in all areas of the product with continued<br />

emphasis on solutions for mould, tool and die makers.<br />

WW K Major graphic enhancements include<br />

improved rendering, a programmable<br />

dynamic command widget and the ability to<br />

fast-view a file before opening to include<br />

pan and zoom functionality. Significant CAD<br />

enhancements include the ability to assign<br />

constraints to geometrical bodies (concentric,<br />

parallel, coincident, distance, etc)<br />

providing the tools to simulate the real<br />

movement of tooling, such as the ability to<br />

check for collisions with slides, cams, lifters,<br />

etc. A re-designed feature manager and 3D<br />

boring chart creates and edits complex holes<br />

and pockets as well as recognising features<br />

directly from the 3D model or 2D drawing<br />

for automated annotation.<br />

User efficiency continues to be a focus for<br />

product development, with the process<br />

workflow having been improved in a<br />

number of areas. This includes the ability to<br />

extract wireframe edges and also concatenate<br />

and simplify the extracted elements,<br />

remove knot points and split the geometry<br />

into correctly formatted curves based on<br />

angular deviation. Automating the process<br />

in this way significantly speeds up high<br />

quality surface creation when working with<br />

third-party data.<br />

VISI-Enhancements in detail<br />

VISI Progress developments include a new<br />

tool building engine, improved unfolding<br />

and new middle skin functionality for<br />

flanging and blanking operations. Other<br />

enhancements include a completely rewritten<br />

explode tool for 3D assemblies (with the<br />

ability to record the explode movements),<br />

improved standard component catalogues<br />

and continued collaboration with CADENAS.<br />

VISI Flow, for plastic flow analysis, is now<br />

64bit compatible, and therefore capable of<br />

benefiting from additional hardware performance.<br />

Other developments include new<br />

tools for the thermal analysis of conformal<br />

cooling.<br />

VISI 20 represents another release with<br />

major CAM development. One innovation<br />

is the ability to distribute the toolpath<br />

computation onto different machines connected<br />

to the same private network. This<br />

technology uses »distributed computing«,<br />

where the computers interact with each<br />

other to achieve a common goal. Each goal<br />

is divided into many tasks, each of which is<br />

solved by one computer connected to the<br />

network. To the main advantages belongs<br />

the combination of slave computers which<br />

can produce a similar computing resource as<br />

a multi-processor super-computer and keep<br />

the master PC free from heavy calcula tions.<br />

L STEEL IN BRIEF<br />

TRAINING EVENT FOR<br />

EUROPEAN RESELLERS<br />

Reading. CAD-neutral Edgecam CAM soft ware<br />

held the first of what is likely to become an annual<br />

training event for 36 of its resellers from Europe<br />

and India. Geared towards detailed training on<br />

specific developments in the latest release of<br />

Edgecam, the week-long seminar was the first of<br />

its type at such a high level. »We’re now aiming<br />

for it to become an annual event«, says Edgecam<br />

General Manager Raf Lobato. And there are plans<br />

for similar events in Asia and the USA in 2013.<br />

»Edgecam is developing extremely fast. Each<br />

new release contains new or con siderably<br />

New toolpath algorithms include an<br />

innovative roughing strategy, improved auto<br />

rest machining, new multi-axis side wall<br />

machining and new multi-axis roughing.<br />

The new roughing strategy massively<br />

reduces rapid moments, optimises stepover<br />

when using values above 50 % of the tool<br />

diameter and propagates high speed<br />

transitions and »corner pip« movements<br />

avoiding feed reduction while machining.<br />

Wire EDM developments include the<br />

ability to auto detect undercuts. When the<br />

offset is larger than the radius of an arc, the<br />

toolpath can self-intersect. The solid simulation<br />

has been enhanced to detect these<br />

conditions where the toolpath crosses and<br />

highlight these in the movement list. The<br />

user can optionally ignore these conditions<br />

or have the simulation automatically stop<br />

when they occur.<br />

(EE 130104501) K<br />

«<br />

CONTACT<br />

VISI/Vero – Head Office<br />

Hadley House<br />

Bayshill Road<br />

Cheltenham, Gloucestershire<br />

GL50 3AW<br />

United Kingdom<br />

phone +44 1189 226699<br />

www.visicadcam.com<br />

enhanced functionality, and our resellers want to<br />

demonstrate all these new aspects of it in their<br />

own countries, so we’re setting up these training<br />

events to offer them our full support.« Presented<br />

by Edgecam’s develop ment and support staff, the<br />

sessions covered the new Wire EDM functionality<br />

introduced in Edgecam 2013 R1, along with Part<br />

Modeller, 5-axis Machining, Strategy Manager,<br />

Custom isation and Post Processors. Resellers who<br />

attended the event in Reading, were enthusiastic<br />

about the information they received, as well as<br />

supporting the idea of it becoming an annual<br />

event.<br />

www.edgecam.com (EE 130104673) K<br />

/<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Northern Europe / UK K 19<br />

Stainless steel spins in washing machines<br />

Espoo. <br />

WW K Miele’s washing machines have the<br />

longest product lives of all competing<br />

appliances according to independent<br />

German WfK Cleaning Technology Institute.<br />

Miele’s machines tested by WfK were the<br />

only ones to operate faultlessly after 5,000<br />

wash cycles. This equals about 20 years of<br />

normal use.<br />

Since the founding of Miele over a<br />

hundred years ago, Miele has persistently<br />

pursued market leadership, which requires<br />

impeccable performance from every<br />

component and material. In washers and<br />

dryers, the best and most sustainable<br />

appliances use stainless steel in parts that<br />

come in contact with water and moisture.<br />

To maintain their market leadership, Miele<br />

relies on leading material suppliers and has<br />

accordingly turned to Outokumpu.<br />

»Only the best <strong>European</strong> quality is good<br />

enough for Miele. Outokumpu supplies that<br />

quality,« comments Miele. Outokumpu’s<br />

stainless steel range meets the requirements<br />

of Miele with a full range of stainless steel<br />

used in washing-machine and tumble-dryer<br />

drums.<br />

After product tests and trial runs in 2011,<br />

Miele and Outokumpu started regular<br />

deliveries in 2012, with the intention of<br />

increasing the deliveries over the next few<br />

years to make Outokumpu a significant<br />

supplier for Miele.<br />

Outokumpu supplies Miele with ferritic<br />

stainless steel for the drums of washing<br />

machines and tumble-dryers as well as<br />

austenitic stainless steel for dryers. Ferritic<br />

stainless steel comprises non-nickel stainless<br />

steel alloys with varying chromium content,<br />

which largely determines the alloy’s<br />

corrosion resistance. Ferritic stainless steel is<br />

the optimal choice for a wide range of<br />

applications. Outokumpu’s ferritic product<br />

range includes all commonly used grades<br />

and covers the main uses of the material.<br />

www.outokumpu.com<br />

/<br />

(EE 130104550) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


20 K Special: Northern Europe / UK<br />

Tata Steel restructures to<br />

improve competitiveness of UK operations<br />

Commissioning of blast furnace No. 4 in Talbot<br />

London. Tata Steel announced that they will restructure their UK<br />

operations in order to improve their competitiveness. Key element is the<br />

restart of blast furnace No. 4 in Port Talbot in South Wales.<br />

WWK Mid of February Tata Steel has restarted<br />

its second blast furnace at the Port Talbot<br />

steelworks in the UK as part of a 250 million<br />

pounds investment programme. Blast<br />

Furnace No. 4 was decommissioned in July<br />

last year before being completely rebuilt<br />

with a 185 million pounds rebuilding<br />

project. This was the UK’s largest industrial<br />

engineering project last year and created<br />

several hundreds jobs.<br />

The state-of-the-art new furnace has<br />

enhanced health, safety and environmental<br />

care facilities, making it a worldwide<br />

standard-setter as one of the most efficient<br />

in the world. It allows Tata Steel to produce<br />

up to 2.47 million tonnes steel in this facility<br />

from now on aiming to meet the demanding<br />

require ments of UK and <strong>European</strong> manufacturing<br />

industries.<br />

Further energy and environmental<br />

benefits will be gained from the recentlycompleted<br />

55 million British pounds energyfrom-heat<br />

scheme at Port Talbot’s steel plant<br />

which will save 10 MW of energy – enough<br />

to power 20,000 homes.<br />

It will also lead to the restarting of the hot<br />

strip mill at the company’s Llanwern site in<br />

Newport, South Wales.<br />

Concentration of<br />

steel finishing sites<br />

Moreover, Tata Steel plans changes at a<br />

number of steel finishing and processing<br />

sites in the UK that would improve its<br />

product and service offering for customers.<br />

These changes would concentrate services<br />

at six distribution and processing hubs<br />

which on the one hand would benefit from<br />

22 million pounds of new investment and<br />

new employment, but would also lead to<br />

the closure of 12 sites, including Tafarnaubach<br />

and Cross Keys in South Wales.<br />

Karl Köhler, CEO of Tata Steel’s <strong>European</strong><br />

operations, said: »Today’s proposals are part<br />

of a strategy to transform ourselves into an<br />

›all-weather‹ steel producer, capable of<br />

succeeding in difficult economic conditions.<br />

These restructuring proposals will help make<br />

our business more successful and sustainable,<br />

but the job losses are regrettable.«<br />

The proposed changes are expected to<br />

lead to a net loss of 900 jobs in the UK,<br />

including 500 jobs in management and<br />

administrative functions at Tata Steel’s Port<br />

Talbot-based production hub in South<br />

Wales.<br />

»Our subsidiary UK Steel Enterprise will<br />

be looking at how it can provide more<br />

support to local steel communities and<br />

stimulate new jobs«, Köhler added. »We<br />

will strengthen this work with a further<br />

650,000 pounds to help them create new<br />

jobs in affected areas. We will do everything<br />

we can to reduce the impact of the proposals<br />

on employees and, where possible, we will<br />

look to achieve job losses through voluntary<br />

redundancies.«<br />

Trade union secretary demands<br />

government action<br />

Michael Leahy, General Secretary of the<br />

Community trade union and Chair of the<br />

trade unions Steel Committee, said: »Sadly,<br />

these potential job losses are yet another<br />

reason why we are calling on the British<br />

government to take urgent action to<br />

stimulate economic growth and help revive<br />

the manufacturing sector. This announcement<br />

comes after a four-year long downturn<br />

in the UK and <strong>European</strong> steel industry,<br />

where the fall in UK steel demand has been<br />

steeper than in any other major <strong>European</strong><br />

economy. This is why we need faster<br />

investment in infrastructure programmes<br />

and community benefit clauses in UK<br />

procurement just as France and Germany do<br />

to support their own manufacturing<br />

industry.«<br />

Last year, Tata Steel launched a five-year<br />

improvement programme backed by significant<br />

investment, including almost 250<br />

million pounds to rebuild a blast furnace<br />

and install energy-efficient gas recycling at<br />

Port Talbot. The restructuring proposal<br />

follows earlier decisions implemented at the<br />

company’s other production hubs in Scunthorpe,<br />

North Lincolnshire, and IJmuiden,<br />

Netherlands.<br />

(EE 130104693) K<br />

About Tata Steel in Europe<br />

The <strong>European</strong> operations of Tata Steel comprise<br />

Europe‘s second largest steel producer. With the<br />

main steelmaking operations in the UK and<br />

Netherlands, they supply steel and related<br />

services to the construction, automotive,<br />

packaging, lifting & excavating, energy & power,<br />

aerospace and other demanding markets<br />

worldwide. The combined Tata Steel Group is one<br />

of the world‘s largest steel producers, with an<br />

aggregate crude steel capacity of more than 28<br />

million tonnes and approximately 81,000<br />

employees across five continents. UK Steel<br />

Enterprise is a subsidiary of Tata Steel. Since it<br />

was set up nearly four decades ago, UKSE has<br />

invested more than 80 million pounds in around<br />

5,600 companies and more than 30 million<br />

pounds in providing business premises.<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


L STEEL IN BRIEF<br />

RUUKKI STRENGTHENS ITS POSITION<br />

IN RETAIL AND LOGISTICS CONSTRUCTION<br />

IN SWEDEN<br />

Helsinki. Ruukki has signed contracts with Swedish companies Nimag<br />

Projekt AB (Nimag) and Peab Sverige AB (Peab) for the design,<br />

manufacture and installation of steel frames and load-bearing roof<br />

structures for a Bauhaus store near Stockholm and for Ikano‘s new<br />

shopping centre in Uddevalla. The contracts are worth a total of around<br />

6 million euros.<br />

Under the contract signed with Nimag, Ruukki will design and deliver<br />

the steel frame, load-bearing roof structures and façades, including<br />

installation, for the new Bauhaus store to be built in the municipality<br />

of Upplands Väsby, near Stockholm. Under the contract signed with<br />

construction firm Peab, Ruukki will design and deliver the steel frame<br />

and load-bearing roof structures, ready installed, for a 25,000 m 2<br />

shopping centre being built in Uddevalla for Ikano. The structures for<br />

the projects will be manufactured at Ruukki‘s plants in Gargzdai,<br />

Lithuania and Seinäjoki, Finland.<br />

www.ruukki.com<br />

(EE 130104551) K<br />

/


22 K Special: Italy<br />

<br />

<br />

Italy remains mired in deep recession and economic prospects for the<br />

current year remain difficult. While Italy’s central bank initially forecasts a<br />

slight improvement in 2013, in January it said the country’s recession would<br />

be worse than previously expected, leading it to cut its 2013 gross national<br />

product estimate due to continuing weakness in the global economy and<br />

disappointing domestic demand.<br />

WW K The Bank of Italy said in its Jan. 18<br />

Economic Bulletin that Italian GDP would<br />

probably contract 1 % this year compared<br />

to the 0.2 % reduction it estimated in July.<br />

»In Italy, the cyclical situation remains<br />

weak in the opening months of 2013«, the<br />

Bank of Italy said. »Domestic demand in<br />

Italy has yet to reach a turning point.<br />

According to the cyclical indicators, GDP<br />

growth was negative again in the fourth<br />

quarter of 2012 and is likely to remain weak<br />

in the current quarter.«<br />

<br />

real change y-o-y in %<br />

However, the Bank of Italy added: »Modest<br />

signs of stabilization can be seen nevertheless;<br />

the prolonged deterioration in firms‘<br />

opinions of the general economic outlook<br />

has come to a halt.«<br />

The GDP has been struggling since 2008,<br />

when it fell 1.2 % and 5.5 % the following<br />

year. Recovery has been limited: in 2010 GDP<br />

climbed only 1.8 % and in 2011 just 0.4 %.<br />

A 2.3 % drop in GDP is estimated for 2012.<br />

The government of Prime Minister Mario<br />

Monti has introduced strict austerity measures<br />

2011 2012 2013<br />

and economic reforms, but they may not be<br />

far reaching enough to mend structural<br />

weaknesses. At the same time, the tough<br />

measures are strengthening the recession.<br />

While domestic demand has fallen<br />

sharply, manufacturers are hoping for a<br />

return to growth in mid 2013. The Monti<br />

government was able to calm markets and<br />

stabilize interest rates for government<br />

bonds, but its labour reforms failed to go far<br />

enough to effectively repair the Italian<br />

economy’s structural weaknesses. The<br />

negative effects of the austerity measures,<br />

such as the intensification of the recession,<br />

and the drop in domestic demand, have<br />

likewise taken their toll on the frail economy.<br />

It appears unlikely that the government will<br />

be able to turn the economy around before<br />

the parliamentary elections this spring.<br />

2<br />

0<br />

-2<br />

-4<br />

-6<br />

-8<br />

-10<br />

(EE 130104843/2)<br />

0.5<br />

-2.3<br />

-0.5<br />

1.0<br />

-7.2<br />

1.4<br />

-1.2<br />

-8.1<br />

GDP Imports Gross xed<br />

capital<br />

-2.1<br />

0.2<br />

-3.4<br />

-0.9<br />

Private<br />

consum<br />

Source: <strong>European</strong> Commission, Autumnal Prognosis 2012, gtai<br />

Some slight gleam of hope<br />

A number of large-scale projects are in the<br />

works, including the Brenner Base Tunnel, a<br />

straight, flat railway tunnel between Austria<br />

and Italy running 55 km from Innsbruck to<br />

Fortezza. Budgeted at some 8.6 billion<br />

euros, the tunnel is scheduled to be<br />

completed by 2025. Other long-term<br />

projects include:<br />

The Strait of Messina Bridge, the longplanned<br />

suspension bridge across the<br />

Strait of Messina connecting Sicily to<br />

the southern tip of mainland Italy. The<br />

bridge’s total cost is estimated at 6.3<br />

billion euros and is expected to be<br />

completed by 2017.<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Italy K 23<br />

Italy: Crude steel production<br />

40<br />

in million tonnes<br />

30<br />

20<br />

27,058 28,604 29,350 31,624 31,553 30,590<br />

19,848<br />

25,750<br />

28,662 28,735<br />

10<br />

0<br />

(EE 130104843/3)<br />

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012<br />

Source: worldsteel<br />

The MOSE Flood Protection Project in<br />

Venice, an integrated defence system<br />

consisting of rows of mobile gates<br />

intended to protect the city from floods<br />

caused by the Adriatic Sea’s rising tides;<br />

scheduled for completion in 2015 at a<br />

cost of 5.5 billion euros.<br />

The high-speed rail connection between<br />

Naples and Bari, budgeted at 5.1 billion<br />

euros and scheduled to be completed by<br />

2020.<br />

The 3.6 billion euros, 240 km-long Livorno-Civitavecchia<br />

highway, scheduled for<br />

completion in 2015.<br />

In view of the current decline in domestic<br />

demand, Italy’s industrial and services<br />

sectors have become largely dependent on<br />

export demand.<br />

Mechanical engineering and luxury sports<br />

cars are among the areas that continue to do<br />

well, along with the food, tourism and<br />

fashion sectors. Italian companies offering<br />

high-end products in these sectors are<br />

benefitting from the strong purchasing power<br />

in the U.S. as well as in emerging economies.<br />

Mechanical engineering is one of the core<br />

sectors of Italian industry and the continued<br />

high demand for exports illustrates that it<br />

remains internationally competitive. In<br />

2011, mechanical engineering production<br />

grew 8.6 % compared to the previous year.<br />

Yet production from January to September<br />

2012 decreased by 4.8 %.<br />

Demand from the U.S. and Southeast<br />

Asian nations has maintained Italy’s exportdriven<br />

business, although traditionally<br />

strong exports to Europe and China have<br />

stagnated.<br />

Imports of machinery and equipment in<br />

2011 increased by 7 %, but decreased<br />

sharply from January to September 2012.<br />

Imports from Germany dropped 8.2 %<br />

compared to the same period in 2011.<br />

Italian auto market<br />

The Italian car market has shrunk more than<br />

30 % since 2007. In 2012, the number of new<br />

registrations decreased by 19.9 % to just<br />

1.4 million units. This followed an 11 %<br />

decline in 2011 to 1.75 million units. The sales<br />

drop in 2011 hit Fiat, the country’s biggest<br />

auto manufacturer, harder than foreign<br />

competitors, although it was able to maintain<br />

its market share of nearly 30 %, followed by<br />

Volkswagen, which even managed to increase<br />

its sales by 1.3 % in the difficult environment<br />

to some 230,000 units for a 13.1 % market<br />

share, making it the second most successful<br />

automaker in the country.<br />

Fiat’s other rivals suffered significant<br />

declines in sales, with Peugeot, the No. 3<br />

carmaker in Italy, down 24.3 %, GM 9.2 %,<br />

Ford 19.5 % and Renault with a 15 % drop.<br />

While Daimler likewise saw a 6.6 %<br />

decrease in sales, BMW bucked the trend,<br />

managing a 0.5 % increase, thanks largely<br />

to the huge popularity of the Mini in Italy.<br />

Similarly, Asian automakers enjoyed<br />

strong sales growth – Nissan saw a plus of<br />

17.9 %, Hyundai 20.3 % and Mitsubishi an<br />

increase of 28.6 %. However, the three<br />

companies combined account for only a<br />

6.5 % market share in the country.<br />

The economic climate worsened for the<br />

car industry in 2012 as the recession was<br />

compounded by austerity measures and<br />

higher taxes.<br />

Action plan stipulated<br />

The collapse in demand in Italy and the euro<br />

zone has resulted in a severe crisis for the<br />

car industry. Roberto Vavassori, president of<br />

Italy‘s automotive industry association Anfia,<br />

has said an action plan to revive Italy’s<br />

automotive industry remains an urgent task<br />

for 2013, adding that not only was car<br />

demand down nearly 20 %, but also that<br />

Italian car production had collapsed in 2012.<br />

The negative trend is seen as a reaction to<br />

the actions of the Italian government and<br />

the changes new policies are having on the<br />

market, such as tax increases on petrol and<br />

diesel. The government also raised VAT and<br />

slapped a new luxury tax on big cars – a<br />

move that has luxury car dealers seriously<br />

worried. Italian manufacturers Maserati,<br />

Ferrari and Lamborghini, which already<br />

suffered a higher-than-average decline in<br />

sales, will be particularly affected, as will<br />

BMW and Daimler.<br />

As for Fiat, the group has managed to<br />

stay afloat thanks largely to its 59 % stake<br />

in Chrysler. While new markets, particularly<br />

Russia, China and Turkey, are providing new<br />

opportunities, Fiat has put plans for a new<br />

plant in Russia on hold due to the<br />

deterioration in the euro zone.<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


24 K Special: Italy<br />

Indeed, the dire situation in Europe may<br />

affect plans by Fiat Chief Executive Sergio<br />

Marchionne to merge Fiat and Chrysler into<br />

a single car company by 2014 or 2015.<br />

»Our primary objective right now is that<br />

of fixing the <strong>European</strong> environment«,<br />

Marchionne said in November in a conference<br />

call with analysts and reporters.<br />

The Turin-based company had in 2010<br />

outlined ambitious plans to increase its total<br />

sales to 6 million vehicles in 2014, but now<br />

expects to sell only between 4.6 million and<br />

4.8 million next year.<br />

While Italy’s industrial sector continues to<br />

navigate the murky waters of the recession,<br />

Prime Minister Monti, in a recent letter to<br />

the Financial Times, expressed optimism<br />

that his government’s reforms will continue<br />

to improve the country’s economy.<br />

»What this government has done to bring<br />

down prices and create more jobs in the<br />

services sector is without precedent for such<br />

a short period of time and given the lack of<br />

a genuine majority in parliament. Italy’s<br />

markets are now as open as the EU average,<br />

in some cases more, according to the OECD.<br />

It estimates the reforms will have lifted Italy’s<br />

economic growth potential by at least 4<br />

percentage points of gross domestic product<br />

by 2020.«<br />

(EE 130104843) K<br />

<br />

Milan. MECSPE 2013 and Subfornitura, held again from March 21 to 23, 2013 in Parma, award the best of Italian<br />

sub-supply relying on excellence, innovation and competitiveness in foreign markets.<br />

WWK In order to give space to the companies<br />

that form the skeleton of the Italian system<br />

– companies with less than 50 employees<br />

and almost 70 % made up of artisan<br />

companies that contribute about a quarter<br />

to the global added value of the industry –<br />

the Subfornitura will be held again as a<br />

trade show within MECSPE. Addressed to<br />

the most innovative tech nologies for the<br />

manufacturing on behalf of a third party,<br />

the trade show represents the most<br />

important national appointment with a<br />

strong international lure. A trade show that<br />

year after year has been able to get the<br />

partnership of important category associations<br />

and that for the 2013 edition can<br />

rely on the presence of CNA Produzione and<br />

on the collaboration with Confartigianato<br />

Padova (Association of Craft, Padua), Gia<br />

(Craft Companies Group) in Parma and CAD<br />

– Centro di ascolto del disagio (Disadvantage<br />

Attention Centre).<br />

Excellence squares, working isles and<br />

demonstration units from project to object<br />

add up to the exhibition areas: The Foundry<br />

Innovation Square, the Transports Square and<br />

many other scheduled initiatives will give the<br />

visitors of Subfornitura the chance to watch<br />

the operation of machines and particular<br />

production processes, applied to the sectors<br />

that mainly represent the market of the<br />

companies on behalf of a third party which<br />

visit MECSPE, e. g. the automotive sector, the<br />

electricity, the aviation and the energy sector.<br />

MECSPE’s nine trade shows comprise<br />

Macchine & Utensili – machine tools, tools<br />

and equipment; Eurostampi and Plastix Expo<br />

– the world of mould and moulding;<br />

Trattamenti & Finiture – surfaces treatments<br />

and finishes; Subfornitura – the biggest<br />

Italian exhibition for the manufacture on<br />

behalf of a third party; Motek Italy – automation,<br />

robotics and power transmissions;<br />

Control Italy – metrology and quality;<br />

Logistica – systems for logistics management,<br />

machines and equipment; Impianti Solari<br />

Expo – B2C event addressed to renewable<br />

energies for the industry.<br />

<br />

/<br />

(EE 130104818) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Italy K 25<br />

<br />

Milan. Focus on internationalization, business and knowledge at the fifth conference and exhibition<br />

of the steel industry, to be held in Milan in the halls of fieramilanocity on 3 – 5 April 2013.<br />

WW K Business, culture and internationalization.<br />

These are the pillars of the fifth Made<br />

in Steel, the conference and exhibition of<br />

the steel industry that will be held in Milan<br />

on 3 – 5 April 2013. Right from the very<br />

beginning, Made in Steel has become the<br />

point of reference of the Italian iron and<br />

steel industry, with the presence of the main<br />

players in steel production, processing,<br />

trade, use and provision of products and<br />

services to the industry. However, Made in<br />

Steel is not limited to Italy: thanks to its<br />

partnership agreements with Euro Inox,<br />

Eurofer, Eurometal, ISSF and IPO Steelnetwork<br />

and its cooperation with the Italian<br />

Chambers of Commerce in Brazil, United<br />

Arab Emirates, Sweden, Germany, India,<br />

Switzerland and Turkey, this event is going<br />

to be an international point of attraction<br />

and business venue. Business will be<br />

fundamental to the event, thanks to the<br />

presence of the main Italian and international<br />

industry players, that can be met to establish<br />

concrete business opportunities. Finally,<br />

Made in Steel will organize a full agenda of<br />

MADE IN STEEL (last edition)<br />

Logistic &<br />

Transportations<br />

1)<br />

thereof 85% Italians, 15% rest of world<br />

2)<br />

thereof 80% Italians, 20% rest of world<br />

(EE 130104715/1)<br />

End users<br />

23%<br />

Exhibitors 1)<br />

248<br />

16%<br />

24%<br />

37%<br />

Distributors &<br />

Service Centres<br />

Producers<br />

conferences and events, the main theme of<br />

which will be Work & Life, and which will<br />

analyze steel market trends and the<br />

prospects of three of the most significant<br />

Others<br />

End users<br />

27%<br />

21%<br />

Visitors 2)<br />

13,500<br />

12%<br />

Producers<br />

40%<br />

Distributors &<br />

Service Centres<br />

Source: MADE IN STEEL<br />

steel using industries: building, transportation<br />

and power & utilities.<br />

/<br />

<br />

(EE 130104715) K<br />

EUROMETAL invitation: III. International Steel Trade Day<br />

EUROMETAL, the voice of<br />

<strong>European</strong> steel, tubes and metal intermediation<br />

announced its III. STSG International Steel Trade<br />

Day in Milano on April 4, 2013. It will take place<br />

<br />

MADE IN STEEL Conference & Exhibition. The<br />

panel of speakers represents a set of top experts<br />

on EU and Italian steel markets. Topics are<br />

perspectives for <strong>European</strong> and Italian steel<br />

producers, re-rollers and processors, Italian steel<br />

markets, pricing for value, present situation and<br />

trends in international steel trading, trade policy,<br />

imports, exports and changing structures in<br />

<strong>European</strong> steel distribution. Members of EURO-<br />

METAL, DISMET (the association of <strong>European</strong><br />

distributors) , EASSC (The <strong>European</strong> association<br />

of flat steel service centres), NAT.FED (the<br />

federation of <strong>European</strong> national associations of<br />

steel, tube and metal distribution) and STSG (the<br />

<strong>European</strong> steel trading study group) may<br />

parcipitate free of charge. Otherwise the partici-<br />

<br />

registered participants will have free access to<br />

MADE IN STEEL Exhibition.<br />

/<br />

<br />

Now on iPad<br />

»<strong>stahlmarkt</strong>« and<br />

»<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong>«<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


26 K Special: Italy<br />

<br />

<br />

Ravenna and Casalmaggiore (Italy). Here the global manufacturer<br />

Marcegaglia has located two production centres in which it processes<br />

high-value quality steel products dedicated to applications including<br />

building & construction, automotive and pressure equipment. Both these<br />

units have been recently upgraded with new state-of-the-art mills to further<br />

widen the productive range. We have visited the two plants.<br />

WW K It’s a snowy day in Casalmaggiore<br />

(Northern Italy) when we arrive at the local<br />

Marcegaglia plant, the first large-scale<br />

carbon tube manufacturing centre established<br />

by the group, a few minutes’ drive<br />

from its headquarters, whose covered<br />

surface was recently doubled. The very first<br />

feature of the plant is an integrated photovoltaic<br />

roofing (employing Marce gaglia PV<br />

panels) generating 2.1 MW (corresponding<br />

to 2.000.000 kWh/year) electrical power to<br />

partially supply the manufacturing process.<br />

The unit here is dedicated to the processing<br />

of carbon steel hot rolled strip for<br />

the production of certified welded tubes<br />

and hollow sections, round, square, rectangular<br />

and of special shapes.<br />

We are here to visit the latest equipment<br />

additions. First of all, the new slitting line<br />

that allows to process high-thickness coils<br />

(up to 16 mm) increasing the whole manufacturing<br />

capacities up to 700,000 tonnes<br />

per year (thanks to five lines). The new line<br />

is charac terized by the presence of a robotcontrolled<br />

blade changing station with preloader<br />

and blade depositer that allow to<br />

better manage the slitting program. Besides,<br />

counting the new slitter, three tube mills for<br />

new dimen sional range capacities have<br />

been added for diameter up to 406,4 mm<br />

and thickness up to 16 mm. Today the<br />

complete production range is manufactured<br />

within 11 lines reaching a manufacturing<br />

capacity of 700,000 tonnes per year.<br />

Tube production has several certifications<br />

including CE marking and AD2000 for<br />

applications such as structures, pressure<br />

purpose, naval construction, auto motive<br />

industry. The very latest addition is the ISO/<br />

TS 29001 quality system certification for the<br />

oil and gas sector.<br />

In addition to several chemical and<br />

mechanical tests on materials, the mills are<br />

equipped with state-of-the-art technology<br />

of in-line controls during the manufacturing<br />

process. A new heat treatment furnace has<br />

also been added to the plant and today the<br />

capacity of normalization, annealing and<br />

stress relieving in Casalmaggiore has been<br />

incremented to 200,000 tonnes per year.<br />

Casalmaggiore by numbers<br />

2 total surface of which 162,000 m 2<br />

are covered<br />

<br />

capacity<br />

<br />

ranging from 1,35 and 16 mm and diameters<br />

<br />

(EE 130104965/1)<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Capacities<br />

Marcegaglia<br />

global capacity<br />

in tonnes/year<br />

Marcegaglia<br />

Ravenna capacity<br />

in tonnes/year<br />

Pickling 3,500,000 3,000,000<br />

Cold Rolling 2,500,00 2,200,000<br />

Skinpassing 1,200,000 750,000<br />

HD Galvanizing over 2,000,000 1,700,000<br />

Pre-painting 600,000 570,000<br />

Logistics plays a key role for Marcegaglia on<br />

a global level. According to this vision, the<br />

Casalmaggiore plant was completed by an<br />

automated warehouse that spreads over 14<br />

hall aisles and allows the automated storage<br />

and preparation of bundles to ship, avoiding<br />

the operator’s access to the loading bays.<br />

Moving to Ravenna (on the Adriatic coast)<br />

we are immediately astonished by the great<br />

area occupied by a well-organized coils<br />

storage system where raw materials are<br />

stacked and registered before being processed.<br />

Logistics plays a key role, here.<br />

Marcegaglia Ravenna is the group’s main<br />

hub: besides the coil storage area, the plant<br />

can count on a huge facility for receiving,<br />

storing, moving and shipping metal materials<br />

including 700 m of harbour docks,<br />

privately owned and managed, finished<br />

with state-of-the-art concrete floor and coil<br />

cradles served by five cranes and an internal<br />

railway line. In Ravenna, the flagship<br />

equipment is the new galva-painting line:<br />

200 m of installation for cold rolled low<br />

carbon and HSLA steel processing with a<br />

manufacturing capacity of 350,000 tonnes<br />

«<br />

CONTACT<br />

<br />

<br />

Italy<br />

<br />

<br />

<br />

<br />

<br />

Italy<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

(EE 130104965/2)<br />

per year and capable of rolling strip<br />

900 – 1,550 mm wide and 0.25 – 1.50 mm<br />

thick.<br />

The line carries out the complete paint<br />

coating process (pretreatment, primer & top<br />

finish) performing galvanized painted zinc<br />

coating from 60 up to 450 g/m 2 total.<br />

Hydraulic automatic gauge control eliminates<br />

not only disturbances caused by the<br />

backup rolls, but also those caused by work<br />

rolls. This new line came in addition to the<br />

other two pickling lines, three cold-rolling<br />

mills, 50 annealing furnaces, one skinpass,<br />

three hot dip galvanizing lines and one prepainting<br />

line. Focusing back on the galvapainting<br />

line, the system configuration<br />

allows to bypass the painting section when<br />

needed, in a way that is quick and efficient.<br />

That also applies for its flexibility which is,<br />

above all, the most important advantage<br />

coming from the installation of a combined<br />

line for galvanizing and pre-painting steel<br />

coils. Obviously, space optimization (only<br />

200 m instead of 360 m required for two<br />

uncombined lines) and investment cost<br />

containment complete the advantages<br />

panorama. Focusing on technical requirements,<br />

the group chose the NIR-system<br />

technology: a combination of special Near<br />

InfraRed heat sources, extreme energy<br />

densities and special process and systems<br />

engineering allowing the fastest solution for<br />

the cure of finish coatings. Marcegaglia<br />

Ravenna technical laboratory has researched<br />

and developed more than 25 standards of<br />

resin organic coating on both sides of the<br />

steel coils: New solutions can be engineered<br />

based on new requirements.<br />

(EE 130104965) K<br />

SIDERURGICA GABRIELLI<br />

BECOMES GABRIELLI S.P.A.<br />

Cittadella/I. The Italian group Siderurgica<br />

Gabrielli S.P.A. – known for its innovative steel<br />

services – has announced that it has changed its<br />

name. It has been called GABRIELLI S.P.A. since<br />

28 January 2013.<br />

/<br />

L STEEL IN BRIEF<br />

<br />

<br />

<br />

Italy<br />

<br />

<br />

(EE 130104897) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


28 K Special: Steel distribution<br />

Steel distribution in turbulent seas<br />

Georges Kirps on strategies to weather the crisis<br />

Katowice (us). How can <strong>European</strong> steel distributors be successful under<br />

the currently challenging market conditions? Georges Kirps, managing<br />

director of <strong>European</strong> steel distribution association EUROMETAL, addressed<br />

this question in his presentation at the Central and Eastern <strong>European</strong> steel<br />

market conference in November 2012.<br />

WW K Kirps started his presentation with the<br />

remark that a series of crises – namely the<br />

banking crisis, the economic crisis and the<br />

sovereign debt crisis – have turned the<br />

world of steel upside down. He explained<br />

that steel use in the EU is still significantly<br />

EU and 400 million tonnes in China, the<br />

preliminary figures for 2012 are roughly<br />

150 million tonnes for the EU and 600<br />

million tonnes for China. In other words, the<br />

proportion of steel used in Europe compared<br />

to China has dropped from 50 % to 25 %.<br />

Georges Kirps<br />

(EE 130104628/4) (photo: WS)<br />

»<br />

Steel<br />

distribution today<br />

is a little bit like<br />

standing on the Titanic –<br />

but there is hope.<br />

below the pre-crisis level. This becomes even<br />

more apparent if one compares the amount<br />

of steel used in Europe in relation to Chinese<br />

steel use. Whereas in 2008, roughly 200<br />

million tonnes of steel were used in the<br />

A difficult environment<br />

Steel use has been hit especially hard during<br />

the downturn. While GDP in the EU27 was<br />

more or less flat in 2012, industrial steel<br />

output dropped about 3 % and construction<br />

output even 4 %. Due to declining volumes,<br />

steel distributors suffered even more, based<br />

on their sales levels. From January to September<br />

2012, sales at steel stockholders fell<br />

9% compared to the previous year while<br />

sales at flat steel service centers lost 6 %.<br />

»This is a very challenging environment«,<br />

said Kirps. Nonetheless, steel distribution<br />

still plays a major role in supply. Nearly twothirds<br />

of the current steel use is supplied by<br />

intermediaries – i. e. distributors – while<br />

roughly one-third is delivered directly from<br />

the steel mill to the end-user. To keep their<br />

market share, distributors will have to<br />

strengthen the ties with their customers,<br />

Kirps said.<br />

Kirps also pointed out that there has been<br />

a structural shift in steel distribution<br />

deliveries. Since 2008, distributors‘ deliveries<br />

and direct mill deliveries have fallen by<br />

nearly the same percentage (17 % vs.<br />

EU-27 market supply*<br />

2008* 2010* 2011* change<br />

2011 / 2008*<br />

change in %<br />

Stockholding distribution deliveries 72 53 57 – 15 – 21,0<br />

Flat steel service center deliveries 37 29 33 – 4 – 11,0<br />

Steel distribution deliveries 109 82 90 – 19 – 17,0<br />

Direct mill deliveries 62 52 51 – 11 – 18,0<br />

EU market supply considered products 171 134 141 – 30 – 17,5<br />

* in million tonnes Source: EUROMETAL, Sosnowiec 2012<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Steel distribution K 29<br />

The role of steel distribution<br />

Non EU mills<br />

13 %<br />

EU mills<br />

87 %<br />

64 %<br />

EU<br />

steel<br />

distribution<br />

64 %<br />

Steel<br />

demand<br />

by end user<br />

segments<br />

in EU-27<br />

steel markets<br />

36 %<br />

direct<br />

deliveries<br />

mill to end user<br />

36 %<br />

Supply Side Intermediation Demand Side<br />

(EE 130104628/1) Source: EUROMETAL, Sosnowiec 2012<br />

18 %), but the picture within the intermediary<br />

side is mixed. While stockholders<br />

lost about 21 % in sales between 2008 and<br />

2011, steel service centers managed to limit<br />

their loss in volume to 11%. »Significant<br />

drops are necessarily leading to excessive<br />

overcapacity«, explained Kirps. He stressed<br />

that in this environment, the financial<br />

performance of the sector is getting more<br />

and more important. This means that saving<br />

cash becomes a crucial point for the survival<br />

of a distributor.<br />

below peak level. Also volumes of strip mill<br />

products service centers have proved<br />

relatively resilient.<br />

On the other hand, apparent use of rebars<br />

has dropped 46 % from its peak level. As a<br />

result, stockists of rebars had to face the<br />

biggest pressure on volumes during the<br />

crisis. But also plate centers, beam centers,<br />

high carbon and alloy steel distributors as<br />

well as distributors of tubular products have<br />

seen significant volume drops, according to<br />

Kirps.<br />

Kirps warned that all operational modes<br />

that have experienced significant volume<br />

declines may face increasing hurdles and<br />

profitability issues. He explained this by<br />

showing that the Return on Capital<br />

Employed (ROCE) has significantly fallen for<br />

distributors. While the distributors‘ ROCE<br />

was around 26 % on average in 2006 – at<br />

that time the same figure as for mining<br />

companies – it was just 9 % in 2011, with a<br />

downward trend. Mining, on the other<br />

hand, still has an ROCE of 25 %, due to the<br />

Distribution follows<br />

a general trend<br />

»Between the last cycle peak in 2007 and<br />

the cycle down in 2012, the EU market<br />

for finished steel products has lost almost<br />

30 % in market supply«, Kirps explained.<br />

»<br />

The<br />

relationship with the<br />

end-user is an important point<br />

for a steel distributor.<br />

<br />

Upstream<br />

ROCE 1<br />

33%<br />

26%<br />

Mining<br />

24%<br />

22%<br />

18% 20%<br />

Production<br />

13%<br />

3%<br />

26%<br />

7%<br />

25%<br />

8%<br />

Unfortunately, steel distribution sales follow<br />

more or less this general trend, he added.<br />

He then looked at the different product<br />

categories and operational modes, which<br />

showed a very diversified picture. »Stainless<br />

steel service centers have resisted the crunch<br />

rather well«, Kirps said and added that in<br />

this category, volumes were just 10 %<br />

26%<br />

24%<br />

23%<br />

9%<br />

Distribution<br />

8%<br />

–1%<br />

Downstream<br />

2006 2007 2008 2009 2010 2011<br />

1<br />

EBIT/Capital Employed, based on available companies reports<br />

(EE 130104628/2) Source: RCG, EUROMETAL, Sosnowiec 2012<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


30 K Special: Steel distribution<br />

Top-10 producers share<br />

57 % 87 % 55 % 28 % 5 % 67 %<br />

Iron ore: (Total) Iron ore: (Seaborne) Met Coal (Seaborne)<br />

Steel<br />

Distribution Automotive<br />

43 %<br />

4 %<br />

9 %<br />

13 %<br />

20 %<br />

Other<br />

AngloAm<br />

Metinvest<br />

AnBen<br />

Metalloinvest<br />

Evraz<br />

Fortescue<br />

ArcelorMittal<br />

BHP<br />

Rio Tinto<br />

Vale<br />

13 %<br />

5 %<br />

16 %<br />

23 %<br />

31 %<br />

Other<br />

CVG<br />

ArcelorMittal<br />

Hancock<br />

NMDC<br />

AngloAm<br />

LKAB<br />

Fortescue<br />

BHP<br />

Rio Tinto<br />

Vale<br />

45 %<br />

5 %<br />

5 %<br />

6 %<br />

8 %<br />

8 %<br />

11 %<br />

Other<br />

NWR<br />

Mechel<br />

Peabody<br />

Walter<br />

Rio Tinto<br />

Xstrata<br />

AngloAm<br />

Teck<br />

Mitsubishi<br />

BHP<br />

72 %<br />

3 %<br />

7 %<br />

Other<br />

Ansteel<br />

JFE<br />

Shougang<br />

Shagang<br />

Nippon<br />

Wuhan<br />

POSCO<br />

Baosteel<br />

Hebei<br />

ArcelorMittal<br />

>95 %<br />

1 %<br />

Other<br />

MetalOne<br />

TKS<br />

Klöckner<br />

AMDS<br />

33 %<br />

5 %<br />

5 %<br />

5 %<br />

6 %<br />

7 %<br />

9 %<br />

11 %<br />

11 %<br />

Other<br />

Renault<br />

Suzuki<br />

PSA<br />

Honda<br />

Nissan<br />

Ford<br />

Hyundai<br />

VW<br />

GM<br />

Toyota<br />

* Data as of 2010 – 2011<br />

Steel distribution is even more fragmented than steel production<br />

(EE 130104628/3) Source: RCG analysis, worldsteel, worldcoal, OICA, companies data, EUROMETAL, Sosnowiec 2012<br />

high level of market concentration in this<br />

segment.<br />

New strategies are necessary<br />

Kirps then looked at the various possibilities<br />

a distributor has for improving his market<br />

standing. Apart from identifying regional<br />

growth markets or segment and finding the<br />

right niches, the relationship with the<br />

customer is important. He highlighted that<br />

it has become necessary for a steel distributor<br />

to reduce delivery times – maybe<br />

through third-party logistics – to address<br />

proximity needs of the customer and to find<br />

the right level between outsourcing of own<br />

Download<br />

You can use our graphics<br />

for your corporate presentation.<br />

They are free<br />

available for our readers<br />

to download.<br />

/www.<strong>stahlmarkt</strong>-magazin.de/<br />

crossmedia<br />

activities and, on the other hand, even<br />

insourcing parts of the customers‘ activities.<br />

Most important, however, is a good<br />

portfolio management. »Cash is king«, as<br />

Kirps put it. This includes the optimizing of<br />

»<br />

Surviving<br />

in troubled steel<br />

markets means saving cash<br />

and identifying new chances.<br />

work shifts for a more efficient plant use,<br />

the possibility of sharing upstream activities<br />

as it is done by big gasoline producers and<br />

the reduction of underperforming activities<br />

and assets. On the one hand, fixed assets<br />

such as real estate or truck fleets have to<br />

be checked to see whether they can<br />

be transformed into cash. On the other<br />

hand, inventories have to be lowered by<br />

reducing complexity, for example by<br />

shifting slow moving products over to<br />

specialist providers.<br />

Looking for new opportunities<br />

In his concluding remarks, Kirps stressed<br />

that the current overcapacity has to be<br />

addressed sooner or later. Moreover, he<br />

clearly sees the reduction of working capital<br />

in all operational processes as the crucial<br />

point to weather the crisis. »This will be the<br />

oxygen mask for steel distributors in<br />

troubled markets«, he said. Kirps also added<br />

that there are opportunities outside<br />

traditional markets, but that a simple »copy<br />

and paste approach« would not be enough<br />

to identify the right niches. »Steel distribution<br />

is facing a tremendous challenge«,<br />

Kirps said and concluded: »There are<br />

problems, but there are also solutions. Be<br />

inventive!«<br />

(EE 130104628) K<br />

«<br />

CONTACT<br />

EUROMETAL<br />

202b, rue de Hamm<br />

1713 Luxembourg<br />

Luxembourg<br />

phone +35 2 26 25 90 26<br />

www.eurometal.net<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Steel distribution K 31<br />

Logistics partner for <strong>European</strong> plate business appointed<br />

London. Stemcor, the world’s largest independent steel trader, has signed a long-term handling<br />

and storage agreement with logistics partner Katoen Natie in Antwerp, Belgium.<br />

WWK The intention is to consolidate stocks of<br />

steel plate into a purpose-built transit and<br />

distribution centre to serve Stemcor’s<br />

expanding <strong>European</strong> customer base. The<br />

appointment of Katoen Natie coincides with<br />

a business improvement project whereby<br />

the entire supply chain from steel mill to<br />

customer has been analysed and optimised.<br />

Historically, plate stocks were held at<br />

numerous locations, fragmenting the<br />

inventory positions. This new central stock<br />

location will hold a wide array of both<br />

commodity and higher grade heavy plate<br />

and provide Stemcor’s <strong>European</strong> distribution<br />

business with a flexible base to support<br />

further growth. In addition the central stock<br />

will serve the requirements of Stemcor’s<br />

customers in African and Caribbean<br />

markets. It is anticipated that, by eradicating<br />

product overlap and centralising inventory<br />

replenishment control, stock levels and<br />

outbound logistics can be better forecast,<br />

resulting in significantly improved service<br />

levels. In addition to this central warehouse,<br />

Stemcor operates regional warehouses in<br />

France, Germany and Scandinavia for quick<br />

deliveries and bespoke logistics solutions.<br />

Robert Van der Weck, Stemcor’s Stockholding<br />

Director, said: »Working with<br />

Katoen Natie, our efficient new transit and<br />

distribution centre will translate into better<br />

customer service. Stemcor’s <strong>European</strong> plate<br />

business has an active customer base of<br />

more than 1,000 addresses, many of which<br />

are end users. The vast majority of these<br />

customers are located within a 650 km<br />

radius of Antwerp, enabling short lead times<br />

when fulfilling orders. We are also adding a<br />

cutting and processing service to give our<br />

customers more choice.«<br />

/<br />

Stemcor Holdings Limited<br />

CityPoint<br />

1 Ropemaker Street<br />

London EC2Y 9ST<br />

United Kingdom<br />

phone +44 207 775 3600<br />

www.stemcor.com<br />

(EE 130104692) K<br />

i<br />

The following article can be downloaded<br />

from the »<strong>stahlmarkt</strong>« website.<br />

The role of steel trading<br />

As a keynote presentation to the 2nd Steel Trade Day in Düsseldorf,<br />

Stemcor CEO Ralph Oppenheimer gave the audience an insight into<br />

the structure and goals of the Steel Trade Study Group (STSG)<br />

within EUROMETAL.<br />

Read the article via QR Code.<br />

Go straight to the PDF using<br />

this QR Code on your smartphone<br />

or via our website.<br />

/www.<strong>stahlmarkt</strong>-magazin.de/crossmedia<br />

RUUKKI AND CAPMAN CREATED FORTACO<br />

Helsinki. Rautaruukki Corporation (Ruukki) and funds managed by<br />

CapMan (CapMan) agreed in October 2012 to combine units of Komas<br />

and units of Ruukki Engineering division to form a new company,<br />

Fortaco. The arrange ment has now been finalised. As announced<br />

Ruukki‘s ownership in the new company is 19 %. Fortaco will be a<br />

leading manufacturing partner for the engineering industry and<br />

Europe‘s largest actor in its field. Fortaco is expected to generate proforma<br />

net sales of approximately 270 million euros in 2012 and will<br />

have a total of approxi mately 2,600 employees. The company has been<br />

formed from the compatible and complementary units of Ruukki and<br />

Komas.<br />

(EE 130104760) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


32 K Special: Steel distribution<br />

Steel distribution in Poland<br />

Insights from the 2012 PUDS conference<br />

Rynek stali 2012<br />

Katowice (us). In November 2012, PUDS, the Polish steel distributors‘<br />

association, hosted its yearly conference. Several representatives from the<br />

industry presented their insights on Eastern <strong>European</strong> steel markets to an<br />

<br />

hard economic times but also said there was hope for the »white light at<br />

the end of the tunnel«.<br />

WW K <br />

conference as president of the association,<br />

as she had been inaugurated roughly six<br />

months before. In her presentation, she<br />

referred to the situation of Polish steel<br />

producers who have weathered the current<br />

economic situation relatively well, compared<br />

to their Western <strong>European</strong> counterparts.<br />

However, it would be necessary to find the<br />

right measure for new investments and to<br />

identify the right niches. »This is the most<br />

important thing these days«, she said.<br />

Moreover, she emphasized that it still<br />

could not be ruled out that the global crisis<br />

might intensify also in Poland, even though<br />

it did not look like this for the time being.<br />

»We do not see any<br />

l a r g e r<br />

consolidation<br />

tendencies«,<br />

<br />

identified five<br />

challenges for steel distributors: cost<br />

reduction, a sound financial standing,<br />

ensuring good customer relationships,<br />

keeping the current business level and<br />

finding extra income from alternative<br />

sources.<br />

»<br />

Companies<br />

that manage<br />

risk better also have<br />

lower stock volatility.<br />

Radoslaw Ziomko, director risk<br />

management, Aon Polska<br />

Coated products and tubes<br />

The following speakers looked at different<br />

sub-segments of the Polish steel markets.<br />

<br />

bearing his name, provided some insight on<br />

the highly specialized market for coated and<br />

galvanized products, which only represents<br />

about 15 % of the whole Polish steel<br />

market. He put a special emphasis on the<br />

effects of anti-dumping rules active for<br />

Eastern Europe.<br />

Marek Misiakiewicz, vice president<br />

of Alchemia S.A., held<br />

a presentation on the<br />

In November 2012, some international fairs took<br />

place at Expo Silesia in Sosnowiec: SteelMet, an<br />

international fair for steel, non-ferrous metals,<br />

technologies and products, SURFPROTECT, a fair<br />

for corrosion protection, TEZ Expo for fasteners<br />

production and application, ScrapExpo for metal<br />

recyclers and Foundry Expo for the casting sector<br />

(photos: WS).<br />

Polish tube market. For the time being, the<br />

biggest competitors for Polish distributors<br />

active in this market segment are sitting in<br />

Slovakia, the Czech Republic and Germany.<br />

However, China is gaining substantial<br />

ground in this segment and has a clear<br />

production overhang when it comes to<br />

tubes, Misiakiewicz added. »Europe is<br />

getting less and less competitive in this<br />

segment«, he said. On the other hand, he<br />

stressed that the highest value-added could<br />

be found in highly specialized products for<br />

the energy industry, where <strong>European</strong><br />

producers are still strong.<br />

Radoslaw Ziomko, director risk management<br />

at Aon Polska, talked about strategies<br />

and possibilities to cope with market risks.<br />

»A downturn is normal«, Ziomko stressed<br />

and pointed out that the steel industry can<br />

be seen as relatively stable in this respect. By<br />

contrast, the airline industry normally counts<br />

nine out of ten years as crisis years. But there<br />

are ways to confront a crisis. »The task is to<br />

identify threats. You then have to either<br />

reduce the risk or to reduce the influence of<br />

the risk on your company«, Ziomko added.<br />

(EE 130104630/6)<br />

<br />

the host organisation PUDS,<br />

the Polish association of<br />

steel stockholders.<br />

The viewpoint of the<br />

large companies<br />

In the afternoon, some speakers from larger<br />

PUDS member companies took the chance<br />

to present their views on the current market<br />

situation. Stefan Dzienniak, board member<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Steel distribution K 33<br />

Free download<br />

Further charts can be downloaded from our<br />

»<strong>stahlmarkt</strong>« web site.<br />

/www.<strong>stahlmarkt</strong>-magazin.de/<br />

crossmedia<br />

(EE 130104630/5)<br />

of Arcelor Mittal Poland, referred to the<br />

general challenges that the Polish steel<br />

market is facing these days. Apart from<br />

rising prices for raw materials and energy,<br />

Dzienniak warned about demographic<br />

problems in Poland, as its population is<br />

gradually getting older.<br />

He stated that the recent bankruptcies of<br />

many Polish construction companies had led<br />

to some cash flow problems, also at steel<br />

distributors. Dzienniak also blamed some of<br />

the current problems of the industry on the<br />

notorious VAT fraud schemes. In his view,<br />

VAT fraud constituted a major source for<br />

market distortions and should be tackled<br />

more seriously by Polish politics and law<br />

enforcement bodies. Nonetheless, his<br />

general view on the economy was quite<br />

positive: »Poland has at least 20 years of<br />

»<br />

Poland<br />

will get a demographic<br />

problem, but we will see<br />

what we can do about it.<br />

Stefan Dzienniak, board member<br />

of Arcelor Mittal Poland<br />

good development ahead, if Poles were to<br />

catch up with Western <strong>European</strong> standards<br />

of living.«<br />

Jerzy Bernhard, CEO of Stalprofil, gave an<br />

overview on the market for long products in<br />

Poland. He highlighted that this product<br />

category had lost importance in Poland after<br />

the large privatizations. However, Bernhard<br />

insisted that one should not paint too<br />

gloomy a picture: Poland still ranks number<br />

19 in global steel production, even before<br />

France. Moreover, long products still<br />

About 350 participants attended the one-day conference »Steel market in Central and Eastern<br />

Europe«. The event was organized by the Polish association of steel stockholders, PUDS, during<br />

the fair SteelMet in Sosnowiec in cooperation with EUROMETAL, the voice of <strong>European</strong> steel,<br />

tubes and metal intermediation.<br />

contribute about 55 % to overall Polish steel<br />

production and profile products had seen<br />

12 % growth year-on-year in the first eight<br />

months of 2012.<br />

On the other hand, there was still a lack<br />

of production balance visible in Polish steel<br />

products, Bernhard said. Whereas Poland<br />

has an overhang in long products and<br />

therefore exports a large part of them, the<br />

country has to import a considerable<br />

proportion of flat products used in further<br />

processing. Like Dzienniak, Bernhard also<br />

stressed the negative impact from bankruptcies<br />

in the construction sector on Polish<br />

steel distributors. »Nevertheless, the situation<br />

for steel distributors in Poland is<br />

generally good«, he concluded.<br />

www.puds.pl<br />

(EE 130104630) K<br />

/<br />

Apparent steel use* 2012 in Central Europe<br />

18,300<br />

2,200<br />

1,900<br />

4,900<br />

9,300<br />

Hungary<br />

18,000<br />

2,100<br />

2,000<br />

4,800<br />

9,100<br />

Slovakia<br />

12,700<br />

1,200<br />

1,300<br />

3,300<br />

6,900<br />

Czech Republic<br />

15,700<br />

1,400<br />

1,800<br />

4,000<br />

8,500<br />

17,300<br />

1,600<br />

1,900<br />

4,300<br />

9,500<br />

Poland<br />

17,200<br />

1,600<br />

2,000<br />

4,400<br />

9,200<br />

2007 2008 2009 2010 2011 E 2012<br />

E – estimated<br />

* nished steel products<br />

Source: EUROMETAL, Sosnowiec , Nov. 2012<br />

(EE 130104630/1)<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


34 K Special: Steel distribution<br />

A tool for optimizing steel stock<br />

Mikel Garay about the Steel Stock Exchange<br />

Katowice (us). In a tight market environment, optimizing steel stock<br />

becomes paramount for every steel distributor. At the Central and Eastern<br />

<strong>European</strong> steel conference, general manager Mikel Garay presented the<br />

Steel Stock Exchange, a new online application for matching the different<br />

needs of steel service centers.<br />

WW K Garay enriched his presentation with<br />

direct insights into the online page www.<br />

steelstockexchange.com. He explained that<br />

the platform has been invented as a tool<br />

for intermediaries, not for end-users. It will<br />

allow steel distributors to optimize their<br />

stock and brings a <strong>European</strong> dimension by<br />

enabling participants to exchange products<br />

with counterparts from different countries.<br />

Steel distribution within<br />

the value chain<br />

At first, Garay reflected on the business<br />

situation in which steel distributors are<br />

currently finding themselves. Regional steel<br />

distribution, with its strong links to the<br />

customer, has an important role and<br />

traditionally a strong position within the<br />

value chain. However, due to globalization<br />

and growing worldwide supply, margins<br />

have come under pressure. For keeping their<br />

profitability, steel distributors have basically<br />

two options: Either they can raise their profit<br />

by identifying new markets and grow their<br />

sales or they can lower their working capital<br />

and save cash. The steel stock exchange is a<br />

tool to achieve the latter.<br />

In a typical case, a given end-user needs<br />

a specified quantity of a special steel grade<br />

within a limited time frame. However, his<br />

local supplier cannot have every grade of<br />

steel available in any quantity at any time.<br />

Wouldn‘t it be convenient if the distributor<br />

could order lacking material online at<br />

another supplier who happens to be overstocked<br />

at the same time? This is exactly the<br />

question which the Steel Stock Exchange<br />

wants to address, Garay explained. By<br />

bringing business partners with excess of<br />

stock and lack of stock together, the Steel<br />

Stock Exchange can help all market participants<br />

in reducing delivery times. »This<br />

is a tool to make your steel stock more<br />

efficient«, Garay said.<br />

A simple and convenient tool<br />

In order to offer material on the Steel Stock<br />

Exchange, a distributor has to register<br />

online. He then has to create a line, to see<br />

if other stockists are interested in the<br />

material he has to offer. The online platform<br />

provides the other users with information<br />

on the steel grade, the dimension, shape,<br />

surface quality and price of the material in<br />

question. Certificates that assure the<br />

quality of the stock can be downloaded by<br />

the potential buyer to verify the origin of<br />

steel and the product specifications. In this<br />

way, the platform facilitates the contact<br />

between potential buyers and sellers.<br />

»Steel Stock Exchange enables you to<br />

check the <strong>European</strong> steel market«, Garay<br />

explained the concept of the application.<br />

The goal is to reduce the amount of slow<br />

movers in stock while looking for a tailormade<br />

solution for the customer at the same<br />

time.<br />

For the time being, a user who registers<br />

receives two free months of membership.<br />

Only verified producers and distributors of<br />

steel can access the system, which the Steel<br />

Stock Exchange guarantees. Thus, it is<br />

assured that only trusted parties will enter<br />

into a business relationship, avoiding<br />

potential unpleasant situations. The contact<br />

information provided by the user is crosschecked<br />

against external public and business<br />

databases to ensure that the level of<br />

transparency for two potential business<br />

partners is considerably increased.<br />

Mikel Garay<br />

Transparent fee structure<br />

After the two-month trial period, the<br />

monthly membership fee for the Steel Stock<br />

Exchange amounts to 100 euros. There are<br />

additional fees for the number of steel lines<br />

that are entered into the system as well as<br />

for viewing contact details of the counterparty<br />

and downloading certificates. It costs<br />

a registered stockist 10 euros to create a line<br />

and 10 cents per metric tonne for each day<br />

the line is available in the system. Viewing a<br />

contact file triggers a charge of 5 euros and<br />

the same amount has to be paid if the user<br />

wants to download a product certificate. All<br />

charges are summed up and are invoiced on<br />

a monthly basis.<br />

Steel Stock Exchange is a company<br />

registered in Spain and subject to Spanish<br />

law. Currently, the platform offers English,<br />

German and Italian as languages for its<br />

users. On the website, you will also find an<br />

online explanatory video which gives a short<br />

introduction on how the platform works.<br />

«<br />

CONTACT<br />

(EE 130104629) K<br />

Steel Stock Exchange<br />

Arantzabal, 2, Esc.1, 2ºC<br />

01008 Vitoria (Alava)<br />

Spain<br />

phone +34 945 242269<br />

www.steelstockexchange.com<br />

(photo: WS)<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Steel distribution K 35<br />

Robust 4-way trucks<br />

for bright steel handling<br />

Combilift delivered two forklifts<br />

Monaghan. J. Adolf Bäuerle GmbH, based in Böblingen in the South of<br />

Germany, is part of the Georgsmarienhütte Holding group and is a leading<br />

manufacturer of bright steel products. It supplies various industries<br />

throughout Europe such as the engineering, agriculture, automotive and<br />

textile sectors with steel in a variety of specifications and finishes. Two<br />

4-way Combilift forklifts have been brought in to handle the company’s<br />

material from the raw stage through to the finished product.<br />

WWK The transport and storage of heavy and<br />

extremely long loads at Bäuerle used to be<br />

handled by a combination of sideloaders<br />

and overhead crane. »This process left a lot<br />

to be desired«, says plant manager Michael<br />

Keppeler. »The limited manoeuvrability of<br />

the sideloader increased the risk of damage<br />

to the product, and double handling slowed<br />

down the entire handling process.«<br />

Two Combilift C6000 diesel powered<br />

6-tonne capacity models have now replaced<br />

the previous system for much more efficient<br />

handling of steel inside the factory building<br />

itself and in the separate warehouse. The<br />

trucks ensure easy transportation of the<br />

bundled steel, which ranges from 3 to 9 m<br />

in length, from storage areas to the production<br />

line. Thanks to the Combilifts’<br />

ability to travel sideways with long loads,<br />

the relatively narrow entrance door is easy<br />

to negotiate and loads can be deposited at<br />

the precise spot where they are required.<br />

»These are the first trucks we have had that<br />

are capable of doing this«, says Michael<br />

Keppeler.<br />

Thanks to their robust design, the Combilifts<br />

can easily cope with the harsh conditions<br />

at Bäuerle, operating two-shifts from<br />

5.30 am to 11 pm. The generous capacity<br />

of the C6000 model enables two bundles to<br />

be carried simultaneously, thereby considerably<br />

enhancing production throughput. Low<br />

level transportation of loads resting on the<br />

integrated platform also improves safety<br />

procedures.<br />

»The spacious cab and the telescopic<br />

forks are perfect for efficient operation and<br />

for driver comfort«, explains Michael Keppeler.<br />

»Because of the long hours that the<br />

operators spend driving around inside and<br />

outside the building, it is essential that we<br />

provide them with a comfortable environment.<br />

The telescopic forks facilitate the<br />

loading and unloading of trucks, and the<br />

agility of the vehicle makes it ideal for<br />

manoeuvring in the tight spaces between<br />

production areas. With these highly flexible<br />

trucks, we are able to store our materials<br />

more efficiently and thereby increase<br />

productivity.«<br />

Combilift 4-way forklifts are all designed<br />

and built in Monaghan, Ireland, where the<br />

company has its headquarter and R&D<br />

facility. The current Combilift range now<br />

encompasses at least fifteen base models<br />

with capacities ranging from 2.5 to 25<br />

tonnes, with LPG, diesel or AC electric<br />

power available. Combilift has won numerous<br />

awards for its products since the<br />

company was established in 1998, and there<br />

are now around 18,000 units in operation<br />

around the world.<br />

(EE 130104914) K<br />

«<br />

CONTACT<br />

Combilift Ltd<br />

Gallinagh<br />

Co. Monaghan<br />

Ireland<br />

phone +353 47 80500<br />

www.combilift.com<br />

The Combilift trucks ensure easy<br />

transportation of bundled steel<br />

(photo: Combilift).<br />

(EE 130104914/1)<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


36 K Special: Tube & Pipe<br />

New solution combines electrical<br />

and hydraulic systems<br />

transfluid ® offers new hybrid drive system for tube processing machines<br />

Schmallenberg. Electric drives are energy-efficient, highly accurate and<br />

largely independent of external influences. The hydraulic drives have a<br />

unique power density and robustness. No system for bending and forming<br />

machines or manufacturing cells can to cover both as standard. transfluid ®<br />

Maschinenbau GmbH covers this gap with a new development.<br />

WWK The engineers of the South Westphalian<br />

company have developed an unique system<br />

that combines some advantages of both<br />

systems. With these new hybrid drive<br />

options, the advanced tube processing<br />

technology is brought into a good form.<br />

More energy-efficient<br />

The hybrid drives are effectively matched<br />

to the requirements of the corresponding<br />

machines. To the equipment of the hydraulic<br />

units of the new system belong constant<br />

pumps and a powerful servo motor. The<br />

motor is very energy-efficient and<br />

almost the entire control of the system takes<br />

place via the power or rotation speed. This<br />

generally improves the energy efficiency by<br />

15 to 20 %, since the power is always given<br />

in accordance with the consumer.<br />

Smaller, quieter and more precise<br />

The hybrid drives are smaller, quieter and<br />

more precise. Furthermore the heating in<br />

the process is minimized. It’s quite remarkable<br />

that the hydraulic unit needs up to<br />

20 % less volume of oil. Additionally the<br />

required performance of the external<br />

cooler is correspondingly lower.<br />

The technology is able to demonstrate its<br />

advantages especially in areas where<br />

powerful drives are required as well as with<br />

many hydraulic cylinders of different sizes<br />

and at different speeds. This applies<br />

especially to bending processes and axial<br />

forming machines.<br />

Unique for hydraulic drives is the new<br />

positioning accuracy due to the hybrid<br />

system. Via the electrical control, the consumption<br />

volumes are pre-selected or stored<br />

and via the rotational speed of the drive<br />

motor submitted precisely.<br />

Responsible for high precision means is<br />

not least the specially designed control<br />

system. It offers a synchronization of the<br />

requested speed of the consumer in relation<br />

to the necessary volume. In this way you are<br />

able to ensure that no excess volume is<br />

generated.<br />

(EE 130104847) K<br />

A new hybrid drive system of transfluid provides more precision, energy efficiency and<br />

performance in advanced tube processing technologies (photo: transfluid).<br />

(EE 130104847/1)<br />

«<br />

CONTACT<br />

transfluid Maschinenbau GmbH<br />

Hünegräben 20 – 22<br />

57392 Schmallenberg<br />

phone +49 2972 9715-0<br />

www.tube-processing-machines.com<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Special: Tube & Pipe K 37<br />

L STEEL IN BRIEF<br />

SCHIERLE EXPANDS<br />

Neuss. Schierle Stahlrohre KG, based in Neuss with a branch in Leipzig,<br />

has purchased a holding in the Dutch company All Steel Products B.V. in<br />

Duiven. Like Schierle Stahlrohre KG, the young company in the Netherlands<br />

also focuses on supplying cylindrical tubes and piston bars. Its personnel<br />

are characterised by decades of experience in the hydraulics market. Schier-<br />

le Stahlrohre KG made this move to secure and expand its Dutch sales<br />

market, as well as to drive forward acquisitions in some other countries.<br />

/<br />

Schierle Stahlrohre KG<br />

Blindeisenweg 9<br />

41468 Neuss<br />

Germany<br />

phone +49 2131 3665-0<br />

www.schierle.de<br />

(EE 130104716) K<br />

Schierle Stahlrohre KG has made a name for itself through the<br />

production and trading of tubes and piston bars at its central site in<br />

Neuss (photo: Schierle).<br />

(EE 130104716/1)<br />

OUTOKUMPU – TUBINOXIA BECOMES<br />

MAJORITY SHAREHOLDER IN THE OSTP TUBULAR<br />

JOINT VENTURE<br />

Espoo. Outokumpu’s partner in the OSTP tubular joint venture, Tubinoxia<br />

S.r.l. has exercised its call option and acquired additional 15 % of the joint<br />

venture’s shares from Outokumpu. Tubinoxia, an Italian company controlled<br />

by Andrea Gatti, has thus increased its ownership in OSTP from 36 % to<br />

51 %. The OSTP joint venture was formed in July 2011 when Outokumpu<br />

decided to exit from the tubular business as part of its restructuring program.<br />

Outokumpu remains as a minority shareholder with a 49 % stake in<br />

the joint venture. The consideration and cash flow impact of this transaction<br />

are marginal.<br />

(EE 130104833) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


38 K Special: Tube & Pipe<br />

New tube production line<br />

in central Russia<br />

Steel products for the Russian gas industry<br />

Russia (VK). Gazpromtrubinvest, a division of Russia’s state-controlled<br />

monopoly gas exporter Gazprom, has launched a project to build a new<br />

plant in central Russia for producing medium-diameter tubes, reportedly<br />

intended to cut costs in projects for pipeline construction across the country<br />

– part of its programme to supply gas to remote rural regions.<br />

WW K At the same time, in January, the<br />

holding signed an agreement with Russia’s<br />

state-controlled Rusnano to co-operate in<br />

the production of large-diameter tubes<br />

made of composite materials to permit<br />

replacement of tubes traditionally made of<br />

metal – to be used in the construction of<br />

major pipelines supplying gas for exports.<br />

In 2012, the company prepared the<br />

construction site in Volgorechensk, in the<br />

Kostroma region, and started building the<br />

facilities for producing medium-diameter<br />

tubes. The project is expected to be<br />

completed within two-and-a-half years,<br />

according to the local government office.<br />

This investment, amounting to about 10<br />

billion roubles (330 million euros), will allow<br />

Gazprom to produce 350,000 tonnes of<br />

tubes annually, adding 462 million US<br />

dollars to the current total annual tube<br />

production by this division of Gazprom.<br />

Gazprom is co-operating with Severstal,<br />

which supplied the metal structures for the<br />

future tube production facilities. The equipment<br />

has been produced by the company’s<br />

Severstal Solutions Division. »Implementation<br />

of the contract with Gazpromtrubinvest was<br />

Now on iPad<br />

»<strong>stahlmarkt</strong>« and<br />

»<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong>«<br />

a major transaction for our company [in<br />

2012]. We offer key clients modern construction<br />

solutions including the often difficult<br />

delivery to the construction site. Our production<br />

capacities currently enable us to send<br />

50 tonnes of metal structures daily, allowing<br />

predictable construction work and meeting<br />

delivery schedules«, according to Severstal’s<br />

state ment.<br />

The site is the second development stage<br />

at an existing plant in Volgorechensk which<br />

began operating in 2000, producing tubes<br />

using German equipment. The site was<br />

originally chosen because of its good<br />

transportation networks and relative proximity<br />

to the seaport of St. Petersburg, which<br />

makes it possible »to reduce transportation<br />

costs and thus cut the price of the tubes,<br />

easing sales to customers,« according to the<br />

company’s website.<br />

The production lines currently in operation<br />

supply tubes for both the local market and<br />

a wide range of customers in Europe and the<br />

USA, including Special Industries, Trident<br />

Steel Corporation, Gertnergroup and Poliurs.<br />

The annual demand for tubes in Russia is<br />

estimated to be about 9 million tonnes. The<br />

tubes are used in many segments of the<br />

country’s economy, including enormous<br />

demand for residential gas and water supplies<br />

(many of which are in poor condi tion and<br />

must be replaced), the construction of<br />

regional gas supply lines, and major gas<br />

export projects – such as South Stream, or the<br />

on-going construction of a large-scale gas<br />

transportation network in Russia’s far east.<br />

One of Russia’s largest tube producers,<br />

the Tube Metallurgy Company (TMK), has<br />

increased production levels by 26 % during<br />

the last two years, to about 1.7 million<br />

tonnes. Russian demand for tubes grew by<br />

48 % in 2011 alone, due to a large number<br />

of projects involving gas transportation and<br />

the renovation of residential systems.<br />

Demand from the country’s energy sector<br />

increased by 62 % and there was a 52 %<br />

increase in residential demand, according<br />

to statistics published by the Concrete<br />

Technologies analytical agency (Tehnobeton).<br />

Projects to build major oil and gas<br />

transportation systems, including export<br />

pipelines, represent 27 % of total demand<br />

or about 3.3 million tonnes of tubes a year.<br />

Meanwhile, Gazprom is looking into<br />

options for replacing metals in tube production<br />

with composite materials for major<br />

pipeline projects, signing an agreement with<br />

Rusnano to create a special working party<br />

during the first quarter of this year to study<br />

the issue. »Gazprom is the world’s largest<br />

tube consumer. We implement enormous<br />

gas transportation projects. We opened the<br />

major Bavanenkovo-Ukhta pipeline in 2012,<br />

the world’s most modern pipeline, and<br />

started construction of South Steam. This is<br />

currently the largest investment project in<br />

Europe. We have already begun to build the<br />

Yakutia-Khabarovsk-Vladivostok pipeline,<br />

which will become a major part of the<br />

Siberian Power gas pipeline system«,<br />

Russian media quoted Alexey Miller, head of<br />

the holding, who was explaining the need<br />

to provide new technology for largediameter<br />

tube production.<br />

»Gazprom’s ambitious projects represent<br />

an enormous field, intended to develop and<br />

implement modern and efficient solutions.<br />

Rusnano’s goal is for these solutions to bring<br />

significant long-term economic advantages<br />

for Gazprom«, the official continued.<br />

(EE 130104824) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Industry K 39<br />

Lightweight solutions for a wide range<br />

of car components<br />

Tata Steel adapts products to the needs<br />

Hanover. Tata Steel presented at EuroBLECH 2012 optimised applications<br />

of advanced and ultra-high strength steels for greener, safer and stronger<br />

cars. These applications are the company’s answer to the WorldAutoSteel’s<br />

latest lightweight small car concept.<br />

WW K Following the findings of World-<br />

AutoSteel’s lightweight small car concept,<br />

called Future Steel Vehicle (FSV), Tata Steel<br />

performed optimisation studies for application<br />

of its own advanced steels. Tata Steel<br />

has developed lightweight designs for a<br />

wide range of steel car components on the<br />

basis of available current steel grades. An<br />

important role is played by the FSV<br />

achievement of saving up to 35 % in weight<br />

and nearly 70 % in life cycle emissions<br />

through improved material performance<br />

and pro duction economics.<br />

WorldAutoSteel initiated project<br />

With the FSV findings, steelmakers worldwide<br />

are responding to the automotive<br />

industry’s demand for lightweight car<br />

solutions that save costs, reduce fuel<br />

consumption and lower emissions. This<br />

development project was initiated by<br />

WorldAutoSteel, the automotive group of<br />

the World Steel Association, in which Tata<br />

Steel actively participated as a steering group<br />

member, collectively designing a lightweight<br />

body structure for future electric/hybrid cars.<br />

Tata Steel’s research and development<br />

department studied the findings to develop<br />

optimised applications of its advanced and<br />

ultra high strength steels.<br />

Satisfied with the results<br />

At EuroBLECH Tata Steel demonstrated how<br />

it delivers lightweight solutions working in<br />

close partnership with its customers. With<br />

the help of a FSV scale model the product<br />

and service portfolio has been displayed.<br />

The process has been accompanied by<br />

studies on body-in-white, seating designs<br />

and sub frame. Tata Steel showed its<br />

capability to cover nearly 100 % of a car’s<br />

steel components.<br />

Sander Heinhuis, Marketing Manager<br />

Automotive of Tata Steel in Europe, says:<br />

»We can be more than satisfied with the<br />

results. Tata Steel delivers lightweight bodyin-white<br />

solutions weighing only a few<br />

kilogrammes more than the FSV model,<br />

which had used steels not available for<br />

commercial use before 2020.«<br />

Maintaining the ease<br />

of manufacture<br />

When upgrading to higher-strength<br />

materials there can be a concern about<br />

compromising on formability in relation to<br />

stamping and on weldability in relation to<br />

assembly processes – in short, about the<br />

ease of manufacture. Tata Steel understands<br />

this issue and combines its application<br />

experience and material knowledge with<br />

computer-based simulation expertise to<br />

(EE 130104596/1)<br />

Tata Steel delivers lightweight body-in-white solutions<br />

weighing only a few kilogrammes more than the FSV<br />

model, which had used steels not available for<br />

commercial use before 2020 (photos: Tata Steel).<br />

(EE 130104596/2)<br />

Tata Steel re-engineered components for body-in-white, subframe and seating designs<br />

using its currently available steel grades and gauges.<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


40 K Industry<br />

build this thinking into a cost-effective<br />

solution. The company develops a design<br />

shape resulting from the existing material<br />

and currently used processes to understand<br />

what needs to be modified in order to use<br />

its new advanced and ultra high strength<br />

steels on existing process equipment.<br />

New structure and products<br />

Since changing its name from Corus in<br />

2010, Tata Steel has transformed the<br />

organisation of its sales and marketing<br />

activities to strengthen its long-term<br />

commitment to the <strong>European</strong> steel market.<br />

Henrik Adam, Chief Commercial Officer of<br />

Tata Steel in Europe, said: »Europe is<br />

currently facing economic uncertainty.<br />

Markets like automotive, mechanical<br />

engineering and construction are heavily<br />

affected by the stagnating economy. To<br />

remain competitive, these industries are<br />

seeking to deliver superior customer value<br />

whilst at the same time reducing costs.<br />

Customers expect support in their<br />

innovation efforts, improved product<br />

performance and value in use.«<br />

«<br />

(EE 130104596) K<br />

CONTACT<br />

Tata Steel<br />

Automotive<br />

Commercial Headquarters 7H-04<br />

PO Box 10000<br />

1970 CA Ijmuiden<br />

The Netherlands<br />

connect.automotive@tatasteel.com<br />

www.tatasteelautomotive.com<br />

SSAB RELEASES<br />

NEW WELDING GUIDE<br />

Stockholm. SSAB has released a unique<br />

and highly detailed guide to welding with<br />

AHSS/UHSS steels. There are more and more<br />

automotive applications being developed from<br />

AHSS/UHSS steels. The new welding guide offers<br />

results, recommendations and a deep insight<br />

needed to optimize welding processes and<br />

quicker realize benefits.<br />

THE NEXT STEP IN CONTOUR<br />

CUT TECHNOLOGY<br />

Finsterwalde. At the EuroBLECH exhibition in<br />

Hanover, Kjellberg Finsterwalde demonstrated<br />

precision plasma cutting of small contours with<br />

Contour Cut and of large contours up to 50 %<br />

faster with Contour Cut Speed. Contour Cut<br />

Speed (CCS) is the latest, patented plasma<br />

cutting technology from Kjellberg Finsterwalde<br />

for the cutting of outer contours and larger inner<br />

contours in steel. The Contour Cut technology<br />

cuts smaller contours, in particular holes with a<br />

diameter/material thickness ratio of 1:1, to the<br />

highest quality.<br />

CCS enriches the existing Contour Cut technology<br />

with a number of significant economic<br />

advantages, as there are reduced costs per metre<br />

cut as a result of higher cutting speeds in the<br />

quality area, very low heat-affected zone, high<br />

quality in terms of contour accuracy, perpendicularity<br />

and surface quality as well as<br />

further reduction of angular deviation at inner<br />

and outer contours and excellent repeat and<br />

dimensional accuracy.<br />

Contour Cut Speed is integrated as a standard<br />

feature of all new plasma cutting units in the<br />

HiFocus series. Users who already have a system<br />

with Contour Cut can also use CCS by getting an<br />

update. Older HiFocus systems can also be<br />

retrofitted with the new plasma torches of the<br />

PerCut 200 and 450 series to take advantage of<br />

the Contour Cut technology.<br />

/<br />

Kjellberg Finsterwalde<br />

Plasma und Maschinen GmbH<br />

Oscar-Kjellberg-Straße 20<br />

03238 Finsterwalde<br />

phone +49 3531 500-0<br />

www.kjellberg.de<br />

(EE 130104572/1)<br />

(EE 130104572) K<br />

Contour Cut Speed<br />

offers cutting<br />

results of high<br />

repeat accuracy<br />

and precision<br />

(photo: Kjellberg).<br />

Resistance spot welding is the most common<br />

method for joining AHSS/UHSS steel in the<br />

automotive industry (photo: SSAB).<br />

»Over the years, we have received a lot of<br />

questions about welding with AHSS/UHSS,<br />

because it differs from welding with mild steels«,<br />

explains Tony Nilsson, Principal Specialist Joining<br />

at SSAB. The guide should be seen as a single,<br />

definitive and indepth summary of knowledge,<br />

research for automotive manufactures. It presents<br />

a detailed overview of the most common<br />

welding methods in the automotive industry:<br />

resistance spot welding, laser welding and arc<br />

welding. It provides a special focus on welding<br />

with UHSS, while revealing detailed test results<br />

and best-practice recommendations for both<br />

coated and uncoated AHSS/UHSS steels.<br />

The welding guide was developed by the SSAB<br />

Knowledge Service Center. The 80 page guide<br />

can be ordered on the internet (prize: 85 euros).<br />

It is available to all automotive manufactures<br />

and tier suppliers, as well as to other industrial<br />

segments that are interested.<br />

www.ssab.com/weldingguide<br />

/<br />

(EE 130104845/1)<br />

(EE 130104845) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


New company brochures K 41<br />

Albert Zimmermann & Söhne<br />

COMPAC ® -FLANGES New Generation<br />

4 pages, English<br />

Advantages of COMPAC-flanges over<br />

DIN-flanges are e.g. low weight, minor<br />

risk of leakage and higher density.<br />

COMPAC-flanges are known for their<br />

unique groove design. Furthermore they<br />

save material and can be arranged side<br />

by side without misalignment. Extension<br />

brackets and additional welds are no<br />

longer required.<br />

Bender-Ferndorf Rohr GmbH<br />

Pipes Made Of Steel<br />

16 pages, English<br />

For more than ninety years now, Bender-<br />

Ferndorf has produced pipes made of<br />

steel for various applications at its<br />

headquarters in Ferndorf, a district of<br />

Kreuztal in the Siegerland. Today, producing<br />

spirally welded pipes of high<br />

quality is the core competence of this<br />

traditional company. World wide delivery<br />

is assured through modern logistics.<br />

Albert Zimmermann & Söhne GmbH & Co. KG<br />

Winterberger Strasse 104, 57368 Lennestadt-Saalhausen, Germany<br />

phone +49 2723 9144-0, fax +49 2723 9144-30<br />

E-Mail: info@azs-gmbh.de, www.compacflansch.de<br />

(EE 130104831) K<br />

Bender-Ferndorf Rohr GmbH<br />

Mühlenweg 2 – 6, 57223 Kreuztal-Ferndorf, Germany<br />

phone +49 2732 552-0, fax +49 2732 552-100<br />

E-Mail: info@bender-ferndorf.de, www.bender-ferndorf.de<br />

(EE 130104826) K<br />

Carl Bechem GmbH<br />

COUTH BUTZBACH<br />

Special Lubricants for<br />

the Sheet Forming Industry<br />

8 pages, English<br />

Carl Bechem GmbH is managed as a<br />

family-owned company meanwhile in<br />

the sixth generation. Daughter companies<br />

are in France, India and Switzerland,<br />

Joint Ventures in the USA, South<br />

Africa, Sweden and China. The company<br />

is one of the global companies in the<br />

field of tailor-made high-performance<br />

lubricants.<br />

Industrial Marking<br />

36 pages, English<br />

COUTH presents the new series of<br />

MC2000 SuperFast dot marking<br />

machines. The system allows users to<br />

obtain indelible marks through<br />

percussion marking of successive dots.<br />

The company brochure also contains<br />

new control units, impact marking<br />

systems and numbering heads, types<br />

and engraving tools.<br />

Carl Bechem GmbH<br />

Weststrasse 120, 58089 Hagen, Germany<br />

phone +49 2331 935-0, fax +49 2331 935-1199<br />

E-Mail: bechem@bechem.de, www.bechem.com<br />

(EE 130104827) K<br />

COUTH BUTZBACH<br />

Potshauser Strasse 12, 42651 Solingen, Germany<br />

phone +49 212 881795-60, fax +49 212 881795-80<br />

E-Mail: vertrieb@couth-butzbach.de, www.couth-butzbach.de<br />

(EE 130104828) K<br />

esta rohr GmbH<br />

More dimensions. More grades.<br />

More possibilities.<br />

16 pages, English/German<br />

esta rohr GmbH produces a variety of<br />

diameters, e.g. for masts, chimneys, shell<br />

courses and pipelines as well as pipes for<br />

steel constructions. Furthermore, compo<br />

nents for offshore wind parks and<br />

crane construction are part of the portfolio.<br />

The company manufactures pipes<br />

with diameters up to 4,5 m, lengths up<br />

to 38 m, wall thicknesses up to 80 mm<br />

and all this in many different grades.<br />

Messerfabrik Neuenkamp GmbH<br />

Neuenkamp Slitting Technology<br />

20 pages, English<br />

The company has been manufacturing<br />

high precision longitudinal slitting and<br />

side trimming tools for over 80 years in<br />

Remscheid. The company offers e.g. roll<br />

shear knives, stripper rings, spacers, steel<br />

stripper rings and assembled knife sets.<br />

The main industrial sectors targeted are<br />

the steel and non-ferrous metals processors.<br />

esta rohr GmbH<br />

Mühlenweg 26, 57339 Erndtebrück, Germany<br />

phone +49 2753 5926-30, fax +49 2753 5926-31<br />

E-Mail: info@esta-rohr-erndtebrueck.de, www.esta-rohr-erndtebrueck.de<br />

(EE 130104829) K<br />

Messerfabrik Neuenkamp GmbH<br />

Neuenkamper Strasse 27, 42855 Remscheid, Germany<br />

phone +49 2191 9351-0, fax +49 2191 340906<br />

E-Mail: info@neuenkamp.de, www.neuenkamp.de<br />

(EE 130104830) K<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


42 K Steel Events<br />

Date/location Subject Organiser Info/Contact<br />

18.-20.3.2013<br />

Hanover<br />

8. Pipeline Technology Conference EITEP – Euro Institute for Information<br />

and Technology Transfer in<br />

Environmental Protection GmbH<br />

+49 511 90992-22<br />

www.pipeline-conference.com<br />

19.-21.3.2013<br />

Nuremberg<br />

21.-23.3.2013<br />

Parma<br />

28.-30.3.2013<br />

Istanbul<br />

3.-5.4.2013<br />

Milan<br />

4.4.2013<br />

Milan<br />

8.-12.4.2013<br />

Hanover<br />

<strong>European</strong> Coatings SHOW NürnbergMesse GmbH +49 911 8606-8000<br />

www.european-coatingsshow.com<br />

MECSPE – Technologies for Innovation Senaf Srl +39 02 332039470<br />

www.mecspe.com<br />

BORU 2013 Ihlas Fair +90 212 454 25-03<br />

www.borufair.com<br />

Made in Steel 2013 Siderweb, Fiera di Milano +39 030 2548520<br />

www.madeinsteel.it<br />

III. International Steel Trade Day EUROMETAL, STSG +352 26259026<br />

www.eurometal.net<br />

Hannover Messe Deutsche Messe +49 511 89-0<br />

www.hannovermesse.de<br />

15.-21.4.2013<br />

Munich<br />

bauma – 30th International Trade Fair<br />

for Construction Machinery, Building Material<br />

Machines, Mining Machines, Construction<br />

Vehicles and Construction Equipment<br />

Messe München GmbH +49 89 949-11348<br />

www.bauma.de<br />

17.-20.4.2013<br />

Mumbai<br />

20.-22.4.2013<br />

Cologne<br />

29.-30.4.2013<br />

Toronto<br />

6.-8.5.2013<br />

Rotterdam<br />

6.-8.5.2013<br />

Amsterdam<br />

BLECH India 2013 Mack Brooks Exhibitions Ltd. +44 1727 814 400<br />

www.blechindia.com<br />

USETEC – World Trade Fair for Used Technology Hess GmbH +49 7244 7075-0<br />

www.usetec.com<br />

The International Nickel Conference Metal Bulletin +44 207779 7222<br />

www.metalbulletin.com<br />

IABSE Spring Conference 2013 IABSE +31 6 53403276<br />

www.iabse2013rotterdam.nl<br />

17. Annual Zinc & its Markets Seminar Metal Bulletin +44 207779 7222<br />

www.metalbulletin.com<br />

14.-15.5.2013<br />

Brno<br />

Stainless 2013 –<br />

7th International Stainless Steel Exhibition<br />

Messe Brünn +49 2801 982614<br />

www.stainless2013.com<br />

14.-16.5.2013<br />

Suzhou<br />

14.-16.5.2013<br />

Nuremberg<br />

BLECH China 2013 Mack Brooks Exhibitions Ltd. +44 1727 814 400<br />

www.blechchina.com<br />

SENSOR+TEST – The Measurement Fair AMA Service GmbH +49 5033 9639-0<br />

www.sensor-test.com<br />

14.-17.5.2013<br />

Stuttgart<br />

27. Control –<br />

International trade fair for quality assurance<br />

P. E. Schall GmbH & Co. KG +49 7025 9206-0<br />

www.control-messe.de<br />

16.5.2013<br />

Brussels<br />

22.5.2013<br />

London<br />

23.-24.5.2013<br />

London<br />

<strong>European</strong> Steel Day Eurofer +32 273879-48<br />

www.eurofer.eu<br />

4. Annual Green Steel Focus Day Platts +44 20 7176-6671<br />

www.platts.com<br />

9. Annual Steel Markets Europe Conference Platts +44 20 7176-6671<br />

www.platts.com<br />

29.-31.5.2013<br />

Singapore<br />

Iron Ore and Steel Trading and<br />

Risk Management Training Course: Asia<br />

Metal Bulletin +44 207779 7222<br />

www.metalbulletin.com<br />

31.5.2013<br />

Prague<br />

4.-5.6.2013<br />

Solingen<br />

17.-19.6.2013<br />

New York<br />

EUROMETAL STEEL NET FORUM 2013 EUROMETAL +352 262590 26<br />

www.eurometal.net<br />

13. German Flame cutting day Schneidforum Consulting GmbH & Co. KG +49 212 24710-47<br />

www.schneidforum.de<br />

Steel Success Strategies XXVIII Metal Bulletin +44 20 7779 7222<br />

www.metalbulletin.com<br />

You can also find detailed information on various events on our web site under<br />

»<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013«, Events.<br />

Go straight to the PDF using this QR code on your smartphone or via our web site.<br />

/<br />

www.<strong>stahlmarkt</strong>-magazin.de/ crossmedia<br />

<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013


Impressum 43<br />

In the next issue...<br />

Issue 2.2013<br />

Central & Eastern Europe<br />

Welding & Cutting<br />

Steel Innovations<br />

Steel Distribution,<br />

Service Centres & Steel Trading<br />

Publication date: August 23, 2013<br />

Ad closing date: August 2, 2013<br />

Editorial deadline: July 15, 2013<br />

Advertisers‘ index<br />

A<br />

AGTOS GmbH 25<br />

Automazioni Industriali Capitanio srl 19<br />

B<br />

BEPRO Blech und Profilstahl<br />

Handelsges.mbH & Co. KG Cover<br />

BM Elettronica Spa 5<br />

C<br />

Combilift Ltd. Co. 37<br />

E<br />

EEW-CTS GmbH 37<br />

I<br />

IBERO-Stahl GmbH 21<br />

IMS Messsysteme GmbH 9<br />

M<br />

Made in Steel srl 7<br />

Marcegaglia spa<br />

O.B.C.<br />

N<br />

Artur Naumann Stahl AG 17<br />

P<br />

Petig Edelstahlhandel GmbH 24<br />

R<br />

Rösler Oberflächentechnik GmbH 31<br />

T<br />

transfluid Maschinenbau GmbH 21<br />

V<br />

Voß Edelstahlhandel<br />

GmbH & Co. KG<br />

I.F.C.<br />

Impressum<br />

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<strong>stahlmarkt</strong> <strong>European</strong> <strong>Edition</strong> 1.2013

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