Steel Market 01 / 2020

01 | March 2020 

SPECIALS 

The challenges of 

the steel industry in 

Southern Europe | 12 

E-mobility as an 

opportunity for the wire 

and cable industry | 24 

INDUSTRY & TECHNOLOGY 

Making steel in the 2020s | 26 

INTERNATIONAL 

ArcelorMittal: Responsible 

steel across Europe | 28 

® 

Beams 

Everything in stock 

up to 25.40 m 

shp@heitmann-stahl.de 

Heitmann Stahlhandel GmbH & Co. KG 

Hansastrasse 22 · 46049 Oberhausen · Germany · fon: +49 (0)208 / 836-0 

fax: +49 (0)208 / 836199 · www.heitmann-stahl.de · shp@heitmann-stahl.de

Structural Hollow Sections 

Warm / Cold 

Everything in stock 

up to 18.10 m 

shp@heitmann-stahl.de 

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Hansastrasse 22 · 46049 Oberhausen · Germany · fon: +49 (0)208 / 836-0 

fax: +49 (0)208 / 836199 · www.heitmann-stahl.de · shp@heitmann-stahl.de

Editorial 

»Climate-neutral steel production will 

fundamentally change the industry. 

Even a virus won‘t be able to change that.« 

Dear readers, 

Within the steel industry a lot of 

thought is put into current challenges 

– trade wars and punitive 

tariffs, rising raw material prices, 

the automobile industry’s declining 

sales figures, investments to 

tackle climate change, opportunities 

and risks of digitalisation. Then, 

suddenly, a small virus, called SARS- 

CoV-2, enters the scene and makes everything 

else take a back seat. International 

trade shows are being postponed, entire plants are 

closing down and supply chains are being disrupted. 

What does all this mean? Will the global economy collapse 

or will we get away with a slight cold? The full 

scale of the consequences won’t reveal itself for another 

couple of weeks or even months. 

Philipp Isenbart, 

editor-in-chief 

In this issue, we will focus on the industry’s ongoing challenges 

because they will soon catch up with us again. 

One concern is the situation in Southern Europe, especially 

in Italy. Credit insurance expert Coface describes it 

as »very risky« (page 12). We’ll also look at the pipe and 

wire industries, which are undergoing exciting developments 

(page 24). Exclusive statements by the CEOs of 

XOM Materials (page 34) and Van Leeuwen (page 36) 

give insights into new trends in the trade. But before 

trade comes production: several articles take a closer 

look at the future of climate-neutral steel production 

(pages 26, 28, 30). This topic will fundamentally change 

the industry over the next couple of years. Even a virus 

won’t be able to change that. 

On this note, I hope you’ll enjoy reading this issue – and 

above all, stay healthy! 

01 | 2020 3

Contents 01 | 2020 

12 

SPECIAL: Italy and Southern Europe 

The two Coface experts Marcos Carias (left) 

and Christiane von Berg took a close 

look at the steel industry in Southern 

Europe. 

28 


ArcelorMittal aims to produce steel in 

a climate-neutral manner. The photo 

shows the Midrex plant in Hamburg, 

Germany. 


News 

6 Hot metal desfurization and dedusting 

system successfully commissioned at 

ArcelorMittal Monlevade 

7 Sublance system for Tangshan Reafon 

and Hegang Laoting 

8 Coke oven gas injection systems for 

ROGESA‘ s blast furnaces 

9 Global Steel Wire places order for 

a Six-Strand Billet Caster 

10 Al Gharbia commissions new LSAW 

large-diameter pipe mill 

11 Jindal Stainless modernises solution 

for AOD converters 

Worldwide 

26 Making steel in the 2020s 

27 Kentucky: Nucor Corporation is 

investing in a new mill 

28 ArcelorMittal: Responsible steel 

across Europe 

30 H2FUTURE: voestalpine‘s »green« hydrogen 

pilot facility commences operation 

31 SSAB initiates study in Finland 

32 Phase-out of mineral oil / 

phase-in of metals? 

TRADE & SERVICE 

33 thyssenkrupp invests in customer 

shopping experience 

SPECIALS 

Italy and Southern Europe 

12 Interview: The challenges of the steel 

industry in Southern Europe 

15 »Consumption level back to normal« 

16 The future of the Ilva steelworks 

is still uncertain 

18 New combustion system for 

ArcelorMittal Asturias 

19 Caleotto: Feralpi to take over 

Duferco’s holding 

wire & Tube 2020 

20 New date for wire and Tube 

Düsseldorf 

21 Energy-efficient systems for heat 

transfer are in demand 

22 wire+Tube – a brief history of a 

worldwide success 

24 Increasingly electrified 

34 Interview: »Room for improvement« 

36 The Van Leeuwen Pipe and Tube Group 

has purchased Benteler Distribution 

STANDARDS 

5 World crude steel production 

38 People 

39 Advertiser’s index 

42 In the next issue / Imprint 

Copyright: Coface; ArcelorMittal 

4 01 | 2020

World crude steel production 

24 

January January % change 

6 Months 

2020 2019 January 20/19 2020 2019 

(1) - HADEED only. 

(2) - the 64 countries included in this table accounted for approximately 99% of total world crude steel production in 2018. 

e - estimated 

% change 

Austria 631 685 -8,0 631 685 -8,0 

Belgium 505 e 635 -20,5 505 635 -20,5 

Bulgaria 45 e 45 1,1 45 45 1,1 

Croatia 10 e 16 -37,8 10 16 -37,8 

Czech Republic 400 440 -9,1 400 440 -9,1 

Finland 332 330 0,6 332 330 0,6 

France 1 294 1 238 4,5 1 294 1 238 4,5 

Germany 2 845 e 3 455 -17,7 2 845 3 455 -17,7 

Greece 95 e 124 -23,4 95 124 -23,4 

Hungary 165 e 156 5,8 165 156 5,8 

Italy 1 874 1 971 -4,9 1 874 1 971 -4,9 

Luxembourg 100 e 189 -47,1 100 189 -47,1 

Netherlands 598 617 -3,2 598 617 -3,2 

Poland 640 e 845 -24,2 640 845 -24,2 

Slovenia 55 e 58 -4,9 55 58 -4,9 

Spain 760 e 1 152 -34,0 760 1 152 -34,0 

Sweden 425 462 -8,1 425 462 -8,1 

United Kingdom 666 606 9,8 666 606 9,8 

Other E.U. (28) (e) 855 e 941 -9,1 855 941 -9,1 

European Union (28) 12 293 13 964 -12,0 12 293 13 964 -12,0 

Bosnia-Herzegovina 70 e 72 -2,7 70 72 -2,7 

Macedonia 25 e 18 37,5 25 18 37,5 

Norway 62 60 2,9 62 60 2,9 

Serbia 135 176 -23,3 135 176 -23,3 

Turkey 3 014 2 569 17,3 3 014 2 569 17,3 

Europe 3 306 2 895 14,2 3 306 2 895 14,2 

Byelorussia 230 e 216 6,5 230 216 6,5 

Kazakhstan 350 e 217 61,3 350 217 61,3 

Moldova 20 e 12 66,7 20 12 66,7 

Russia 6 000 e 6 256 -4,1 6 000 6 256 -4,1 

Ukraine 1 843 1 850 -0,4 1 843 1 850 -0,4 

Uzbekistan 50 e 46 8,7 50 46 8,7 

C.I.S. (6) 8 493 8 597 -1,2 8 493 8 597 -1,2 

Canada 1 090 e 1 166 -6,5 1 090 1 166 -6,5 

Cuba 20 e 19 6,8 20 19 6,8 

El Salvador 10 e 8 17,8 10 8 17,8 

Guatemala 25 e 26 -3,9 25 26 -3,9 

Mexico 1 375 e 1 636 -15,9 1 375 1 636 -15,9 

United States 7 707 7 518 2,5 7 707 7 518 2,5 

North America 10 227 10 373 -1,4 10 227 10 373 -1,4 

Argentina 298 371 -19,6 298 371 -19,6 

Brazil 2 680 3 015 -11,1 2 680 3 015 -11,1 

Chile 110 e 81 35,0 110 81 35,0 

Colombia 95 e 96 -1,5 95 96 -1,5 

Ecuador 50 e 51 -1,6 50 51 -1,6 

Paraguay 5 e 2 131,2 5 2 131,2 

Peru 90 e 101 -10,6 90 101 -10,6 

Uruguay 5 e 6 -22,7 5 6 -22,7 

Venezuela 0 e 4 -100,0 0 4 -100,0 

South America 3 333 3 728 -10,6 3 333 3 728 -10,6 

Egypt 575 e 722 -20,4 575 722 -20,4 

Libya 65 e 29 123,7 65 29 123,7 

South Africa 398 e 521 -23,7 398 521 -23,7 

Africa 1 038 1 272 -18,4 1 038 1 272 -18,4 

Iran 2 895 e 1 971 46,9 2 895 1 971 46,9 

Qatar 230 221 3,9 230 221 3,9 

Saudi Arabia (1) 412 469 -12,2 412 469 -12,2 

United Arab Emirates 303 304 -0,3 303 304 -0,3 

Middle East 3 841 2 966 29,5 3 841 2 966 29,5 

China 84 269 e 78 594 7,2 84 269 78 594 7,2 

India 9 288 9 591 -3,2 9 288 9 591 -3,2 

Japan 8 244 8 142 1,3 8 244 8 142 1,3 

South Korea 5 753 6 252 -8,0 5 753 6 252 -8,0 

Pakistan 260 e 255 2,0 260 255 2,0 

Taiwan, China 1 700 e 1 990 -14,6 1 700 1 990 -14,6 

Thailand 365 e 340 7,3 365 340 7,3 

Vietnam 1 530 e 1 746 -12,4 1 530 1 746 -12,4 

Asia 111 409 106 909 4,2 111 409 106 909 4,2 

Australia 440 468 -5,9 440 468 -5,9 

New Zealand 55 56 -1,6 55 56 -1,6 

Oceania 495 523 -5,4 495 523 -5,4 

Total 64 countries (2) 154 436 151 228 2,1 154 436 151 228 2,1 


Industry & Technology 

News 

Hot metal desfurization and dedusting system successfully 

commissioned at ArcelorMittal Monlevade 

ArcelorMittal Monlevade has commenced operation 

of a 130-tonne-hot-metal desulfurization station 

(DeS) and a new dedusting system supplied by Primetals 

Technologies. The desulfurization station represents 

the first installation of Primetals Technologies 

combining a volumetric dosing device for Magnesium 

(Mg) and a pressure dispenser for Calcium Oxide 

(CaO). Low sulfur levels of lesser than 0.005% 

(50ppm) can be achieved. The consumption of desulfurization 

agents is significantly reduced and processing 

times are reduced to less than 30 minutes compared 

to treatment in a torpedo car. A handling system 

for 130-t-hot-metals ladles was also part of the 

project. The new equipment is part of an expansion 

and quality improvement program at ArcelorMittal 

Monlevade. 

Danieli to modernize the Algoma steel plate mill in Ontario 

Danieli, along with Danieli Automation 

and Danieli Taranis, are the 

supplier team chosen for a complete 

upgrade of the 166-in. wide plate 

mill of Algom a Steel in Sault Ste. 

Maire, Ontario. The project will allow 

Algoma to expand its product portfolio 

to include wider plate products, 

to better control shape and surface 

quality and to improve logistics – 

making it possible to offer enhanced 

ship on time performance. The plant 

will be completely re-automated by 

Danieli Automation from Level 0 

through to Level 2 systems. Along 

with new process equipment and new 

digital drives, this will allow Algoma to 

perform normalized – or controlled 

– rolling, so that it can supply new 

grades of plate to the shipbuilding, 

energy and bridge building sectors. 

Additionally, Danieli Taranis will provide 

engineering and post-commissioning 

support. Danieli’s scope of 

work will include an overhaul of the 

complete plant automation system 

and the installation of a new primary 

de-scaler, a new hot-leveler and a 

new cooling bed. A new dividing 

shear, piling system, ‚top-to-bottom‘ 

automated inspection system and 

plate marking machine will upgrade 

the finishing area. 

New AOD converter torque retainer from SMS group 

For North American Stainless (NAS) in Ghent, Kentucky, SMS group has commissioned a torque retainer for 

the 160-tonne AOD converter no. 1. The aim of the revamp was to reduce the torque that had previously been 

causing uncontrolled vibrations and damage to the bull gear, bearings, and foundations of the converter drive 

during AOD converter operation. As a result, the uncontrolled vibrations in the gear unit and converter vessel 

were substantially reduced. The target values were achieved under production conditions shortly after commissioning. 

SMS group supplied the torque retainer as a compact electrohydraulic unit. The scope of supply also 

included the engineering, supervision of the erection and installation work, and technical assistance during 

commissioning. Both the cold and hot commissioning were completed jointly with the customer. 

First coil at Nucor Steel Gallatin‘s pickling and galvanizing line 

Pickling and galvanizing of the first coil in September 

2019, marked the production start of the new »heatto-coat« 

process line at Nucor Steel Gallatin in Ghent, 

Kentucky. SMS group delivered the whole line, and 

notes that the »heat-to-coat« technology is characterized 

by the compact and operator-friendly U-shape 

design, the turbulence pickling system, the high-power 

inductive heating system, the FOEN galvanizing equipment 

and the Drever after-pot cooling system. The line 

is designed to produce 500,000 tonnes of galvanized 

hot strip per year with a maximum capacity of 180 tonnes 

per hour and a large strip cross section (up to 6.35 

millimeter thickness and up to 1,854 millimeter width), 

which sets a new standard in hot strip galvanizing. The 

»heat-to-coat« process based on SMS patented technology 

permits the production of galvanized steel strip 

with durable corrosion protection, an appealing visual 

appearance, as well as an increased mechanical 

load-capacity while still maintaining low production 

and investment costs, SMS group says. 


News 


North Star BlueScope Steel: Single-strand continuous caster 

North Star BlueScope Steel, located in Delta, Ohio, has selected SMS group as the supplier for its new singlestrand 

thin-slab continuous caster. The new casting machine will have a thickness range of 95 to 110 millimeters 

and a width range of 900 to 1,595 millimeters. It will allow North Start BlueScope Steel to increase 

thin-slab production from 2.2 million tonnes (2.4 million short tons) to over 3.3 million tonnes (3.6 million 

short tons) per year. To digitalize the casting process, SMS group is going to supply a range of innovative 

technology packages. The new casting machine will be equipped with X-Pact ® Width Control, X-Pact Solid 

Control that includes width-dependent air-mist secondary cooling and solidification control, Level 2 X-Pact 

Cast Optimizer and the HD mold mold monitoring system. 

Sublance system for Tangshan Reafon and Hegang Laoting 

Danieli Corus has signed two contracts 

for in total four sublance 

systems to be installed in China. 

Tangshan Reafon Iron & Steel has 

contracted Danieli Corus to implement 

a sublance-based BOF process 

control system with SDM Process 

Model for one of the 210-ton converters 

at the Tangshan, Hebei 

plant. Hegang Laoting ordered 

three sublance systems with SDM 

Process Model and ASCON slag 

control system, to be implemented 

at the 120-ton converters of BOF 

Shop No. 2 at their plant in the Laoting 

Economic Development Area, 

Danieli‘s DMS SkinPass 4Hi at SDI in Pittsburgh 

Hebei Province. This order follows 

those placed by Hegang Laoting 

for the supply of three systems for 

BOF Plant No. 1, in 2018 and 2019. 

Copyright: Danieli 

Steel Dynamics ordes skin-pass mill from Fives 

Steel Dynamics, Inc. (SDI) has selected Fives for a high 

efficiency skin-pass mill - DMS SkinPass 4Hi - at the 

GalvTech facility of its Techs Division in Pittsburgh, 

Pennsylvania. For high quality strip finishing, a skinpass 

mill is essential to remove the yield-point elongation 

effect and greatly improve the surface roughness 

and flatness. The DMS SkinPass 4Hi, a new skin-pass 

mill from Fives, is designed to improve performance 

and surface quality of a continuous galvanizing line. 

The mill is a wet process type with a maximum rolling 

force of 5500 kN. SDI and Fives ignited a preferred 

partnership last year, having signed a major contract 

for the design and supply of a new continuous galvanizing 

line (CGL No. 3) and an upgrade of the continuous 

galvanizing line (CGL No. 2), both located in Columbus, 

Mississippi. 

Now Arvedi ESP line to steel producer in Hebei Province 

A Chinese steel producer located in Hebei Province has placed an order with Primetals Technologies for the supply 

of an Arvedi ESP (Endless Strip Production) line. The casting-rolling facility will be part of a new steelmaking 

facility with one BOF currently under construction. The Arvedi ESP line is capable of rolling strip to a reproducible 

strip thicknesses down to 0.7 mm, The Arvedi ESP plant will allow the steel producer to better serve the highly 

attractive local and export markets for high-quality, thin-gauge strip products, Primetals notes, adding that the 

180-meter-long plant is far more compact than conventional casting and rolling mills. According to news service 

Kallanish Steel, the customer is Taihang Iron & Steel. 



News 

World‘s largest clutch-operated screw press 

AVIC Shaanxi Hongyuan Aviation 

Forging Co., Ltd. has put the world‘s 

largest clutch-operated screw 

press into operation at its site in 

Xi’an, Shaanxi Province. The 

SPKA-type clutch-operated screw 

press, which was supplied by SMS 

group, has a screw diameter of 

1,330 millimeters, a hard-on-hard 

blow force of 365 MN, a gross power 

of 27,000 kJ and a weight of 

2,900 tonnes. It is already the worldwide 

third clutch-operated screw 

press of this size supplied by SMS 

group, and with its performance 

data exceeds the other two existing 

presses delivered before. 

The clutch-operated screw press 

requires far less stroke to achieve 

the preset ram speed than a conventional 

slipping-wheel screw 

press. The maximum ram speed is 

attained after just 10% of the ram 

stroke, and remains at a constant 

level until the ram hits the part 

being forged. This type of press is 

particularly suitable for high-energy 

forging as typically used for turbine 

blades or structural aircraft 

components, for example. 

Quenching and HSD lines successfully commissioned 

Quenching and HSD lines from SMS group at Daehan Sinpyeong. South Korean Daehan Steel Co., Ltd. 

has re-started production with new SMS group quenching and high-speed lines following the successful 

modernization of the Sinpyeong bar mill. The Final Acceptance Certificate (FAC) was signed two months 

ahead of the original schedule, SMS group notes. The main target of the modernization was to reduce the 

ferro-alloys content in the billets, which results in a substantial reduction in production costs. The upgrade 

also aimed to improve the production efficiency with a product range from 16 to 35 millimeters rebar and 

steel grades up to SD600. 

Coke oven gas injection systems for ROGESA‘ s blast furnaces 

ROGESA Roheisengesellschaft Saar mbH, the pig iron 

plant in Germany’s state of Saarland, owned jointly by 

Dillinger Hütten und Saarstahl, has awarded Paul 

Wurth with the order to design and supply coke oven 

gas injection systems for the company’s blast furnaces 

No. 4 and No. 5. With this new technology, coke oven 

gas will become a metallurgical process gas instead of 

being used to produce energy at a low efficiency level. 

In its new role, coke oven gas will partially replace 

both pulverized coal and metallurgical coke as reducing 

agents in the blast furnace process, thus contributing 

to reducing the carbon intensity in the blast 

furnace as well as the carbon footprint of the overall 

ironmaking operations. 

ROGESA, the pig iron plant in Saarland, Germany 

Copyright: ROGESA 

World‘s first DUE plant commissioned 

Danieli is currently commissioning the world’s first DUE 

plant at Shougang Jingtang, Caofeidian Industrial Area, 

Tangshan city, Hebei province. This new concept in thinslab 

casting and rolling unifies all the winning features 

that have been demonstrated up to now in a single production 

line, using either endless or coil-to-coil rolling in 

separate production lines while eliminating the limiting 

factors of each. The single-strand thin-slab caster regularly 

produces slabs reduced from 130 mm (mould exit) 

to 110 mm (TSC exit), using Danieli’s Dynamic Soft 

Reduction technology. Coil-to-coil rolling is already a 

consolidated production practice as is semi-endless 

rolling, the latter being the natural step to achieve the 

true casting/rolling functionality in endless mode. 


News 


Global Steel Wire places order for a Six-Strand Billet Caster 

Global Steel Wire S.A. (Celsa Group), located in Santander, Spain, has placed the order for the upgrade of their continuous 

billet casting machine with SMS Concast. Steel production at Global Steel Wire S.A. (GSW) is focused on wire rod in special 

steel grades for the automotive and special engineering industries. Currently, the existing caster produces roughly 

900,000 tonnes of steel per year in 180 millimeter square sections. The aim of the modernization is to increase the production 

flexibility by broadening the range of cast formats by the addition of 200 to 240 millimeter square sections, increasing 

the casting speeds, and consequently enhancing the productivity and the quality of the cast products. The upgrade is 

to be implemented with minimized interruption of production. The start-up of the upgraded machine is scheduled for 

early 2021. The order includes the installation of CONDRIVE mold oscillation drive systems on all strands. CONDRIVE has 

already been tested and has been successfully running on one strand at Global Steel Wire since October 2018. 

Ural Steel selects Danieli DANCU Technology for BF modernization 

As part of a large scale, technical 

overhaul project on Blast Furnaces No. 

2 and 3 at the Ural Steel plant in Novotroitsk, 

Russian steel producer Metalloinvest 

has selected Danieli technology 

to upgrade Blast Furnace No. 

3’s charging system. The furnace will 

be equipped with a modern chutetype 

distributor based on hydraulics 

for maximum reliability and availability. 

The Danieli distributor (DANCU) has 

only a few moving parts, and it is the 

most straightforward, robust design 

in the industry. All main components 

are either failure-free or redundant, 

ensuring unparalleled reliability. To 

allow implementation without large-scale 

modifications to the existing 

top structure of Ural Steel plant’s Blast 

Furnace No. 3, Danieli Centro Metallics 

and Danieli Corus have developed 

the Compact DANCU, which has a 

slightly shorter maximum chute 

length, the plantbuilder underlines. 

Copyright: Danieli 

Danieli‘s DANCU at Ural Steel 

in Novotroitsk 

Sublance systems for Severstal Cherepovets 

Severstal has contracted Danieli Corus to design and supply three sublance systems for three 350t converters at the 

BOF Shop at Cherepovets. Danieli Corus is the market leader in sublance-based BOF process control, and the implementation 

of this technology will contribute to Severstal’s objective of achieving lower steel production costs while 

maintaining efficiency and quality. Sublance technology, in combination with a state-of-the-art process model, enables 

shorter tap-to-tap times, higher hit rates and reduced consumption of oxygen, energy and flux materials, while 

improving operating conditions. Danieli Corus systems have a proven, unparalleled capability of trouble-free operation 

for multiple decades in the hostile environment above the converter hood. 

China’s Jingye Group will be taking over 

certain assets of British Steel 

According to a statement from the UK Official Receiver’s 

(OR) office, »the Official Receiver and Special 

Managers from EY can confirm that a sales contract has 

been entered into with Jingye Steel (UK) Ltd and Jingye 

Steel (UK) Holding Ltd (together, Jingye), to acquire the 

business and assets of British Steel Limited (BSL), including 

the steelworks at Scunthorpe, UK mills and shares 

of FN Steel BV, British Steel France Rail SAS and TSP Engineering.« 

British Steel had entered administration in 

May when former owners Greybull Capital had declared 

the company as bankrupt. It has since continued to operate 

under the direction of special managers appointed 

by the UK government’s OR. »Jingye plans to invest £1.2 

billion in the business over the next decade in upgrading 

the plants and machinery, improving the new company’s 

environmental performance and boosting energy efficiency 

to place the operations on a more competitive 

and sustainable footing,« the Chinese steelmaker says. 



News 

Al Gharbia commissions new LSAW large-diameter pipe mill 

Arab steel producer, Al Gharbia 

Pipe Company, has commissioned 

a new Longitudinal Submerged 

Arc Welded (LSAW) large-diameter 

pipe mill in the Khalifa Industrial 

Zone Abu Dhabi (KIZAD). A 

consortium built it with Larsen & 

Toubro and SMS group as the 

contractor for engineering, procurement 

and construction (EPC). 

The plant is designed for a production 

capacity of 240,000 metric 

tons per year. The products 

manufactured are mainly designed 

for onshore & offshore 

line pipes including sour gas applications. 

Al Gharbia intends to 

produce pipes with a length of 

up to 12.2 meters and an outer 

diameter of 18 to 56 inches. 

Material qualities up to X80 will 

be processed, with a maximum 

wall thickness of 44.5 millimetres. 

One of the production line’s special 

features is the JCO tube forming 

process developed by SMS group. 

According to the company, the 

operator can quickly change to 

other tube dimensions and produce 

small batch sizes. 

Grange Resources receives steel plate conveyor from Aumund 

Australian company Grange Resources recently replaced its belt conveyor at its Port Latte pellet plant 

with a steel plate conveyor from Aumund. According to the German conveyor engineers, the new belt 

conveyor is designed for hot material (KZB-H) of up to 1000 °C. This enables the hot iron ore pellets to be 

transported continuously and trouble-free from the shaft furnace to the condenser. Grange Resources 

intends to use this measure to avoid regular plant shutdowns. These were previously unavoidable because 

the belts of the old plant required replacing approximately every 40 days. It also increased productions 

costs. According to Aumund, commissioning is expected to take place in May of this year. 

Spain: Acerinox relies on torque support from SMS group 

SMS group has commissioned a torque arm for the 

120-ton AOD converter No. 2 at Acerinox Europa in 

Cádiz, Spain. The conversion aimed to minimise the 

destructive forces acting on the gear unit, bearings 

and foundation during operation of the converter. By 

using the new electrohydraulic torque support, it was 

also possible to achieve a significant reduction of the 

uncontrolled vibrations of the gear unit and the converter 

vessel, says SMS group. According to them, the 

target values concerning the reduction of the torque 

were exceeded only a short time after commissioning. 

Gear unit of an AOD converter with vertical torque support 

Copyright: SMS group 

Noodle.ai and SMS digital launch AI-driven 

application for the steel industry 

The Mechanical Properties Variability (MPV) application 

has created the possibility to get a grip on the variability of 

mechanical material properties in the steel production 

process. The new approach, created by Noodle.ai and SMS 

digital, is based on the ability to »sense« correlations using 

artificial intelligence (AI). The application makes predictions 

and concrete recommendations. The focus lies on a 

property’s yield strength, tensile strength and elongation. 

The application detects patterns within the recorded production 

data and can identify causes for deviations from 

the required mechanical material properties. It can predict 

when major fluctuations occur and specify the input parameters 

and PDI settings. Using the Process Data Input 

(PDI), the specified values for the material property’s yield 

strength, tensile strength and elongation can be set. As a 

result, the MPV application can help steel manufacturers 

save costs in several ways, e.g. by reducing alloying costs 

through better control of variability. 


News 


Posco SS Vina from Vietnam sells rebar rolling mill 

Vietnamese company Posco SS Vina has sold its rebar rolling mill to Hilco Industrial Acquisitions. Danieli delivered the mill 

in 2015. It consists among other things of a walking-beam furnace, 18 mill stands and a cold shear. Posco SS Vina intends 

to concentrate its remaining section mill on the manufacture of products such as H-beams. In December last year, it was 

already announced that the Japanese Yamato Kogyo Group had acquired a 49 per cent stake in the company. 

NLMK and Paul Wurth complete relining of blast furnace 

Blast furnace no. 6 at the NLMK 

Group’s main plant in Lipetsk, Russia, 

has been completely relined. It has a 

frame diameter of 12 meters and a 

useful volume of 3,813 cubic meters. It 

is equipped with 32 blowing moulds 

and designed for a nominal output of 

3.4 million tons of pig iron per year. 

The new blast furnace designed and 

equipped by Paul Wurth has now 

been blown in. The supplies included 

the blast furnace steel jacket and the 

hearth using super-microporous carbon 

material and a ceramic cup. The 

company also provided all other refractory 

materials, cooling elements, 

tuyères and their cooling rings. 

Furthermore, it supplied low-energy 

blast connections and a completely 

new hot blast ring pipe. Also, the original 

Bell Less Top (BLT) system, which 

was the first installation of this kind in 

the former Soviet Union, was modernised 

in 1978. 

Photo: Paul Wurth 

The new blast furnace No. 6 at NLMK in 

Lipetsk, Russia 

Jindal Stainless modernises solution for AOD converters 

Primetals Technologies has commissioned a new Level 2 

system at Jindal Stainless on AOD converter No. 1. According 

to a press release, initial experiences in operation 

have shown that production processes are much more 

stable. The core of this level 2 process automation is a 

dynamic process model, which enables both a preliminary 

calculation and an online simulation of the process. According 

to Primetals, errors can be avoided by pre-calculating 

the melts, as the feed materials can be prepared in 

good time. »The exact calculation of the temperature and 

coal flow during production in real-time improves the 

process accuracy and the quality of the stainless steel produced«, 

the company writes. A further advantage of the 

modernisation is a »Digital Twin« through which all-important 

process data will be collected. This data can be 

used for further optimisation or new development. 

China Steel Corporation upgrades RH plant in Kaoshiung 

Taiwanese steel producer China 

Steel Corporation (CSC) has placed 

an order with SMS Mevac for the 

modernisation of the oldest RH 

plant in its Kaoshiung steelworks. 

CSC uses it the plant for hydrogen 

degassing to produce a high-quality 

heavy plate. SMS Mevac will 

equip the plant with a new 

four-stage steam jet vacuum 

pump. As a result of the increase 

in suction capacity up to 600 kilograms 

per hour at 0.67 mbar, 

plant leaks can be more easily 

Source: SMS group 

compensated, according to SMS 

group. Also, shorter evacuation 

times will be achieved. Furthermore, 

the new vacuum pump can 

be operated with condensation 

temperatures of up to 38 °C. This 

increases the flexibility of the RH 

plant, especially during hot summer 

months. 

A new steam jet vacuum pump 

will ensure greater efficiency and 

flexibility at CSC. 


Special 


»Very risky« 

The challenges of the steel industry in Southern Europe 

What is the situation of the steel industry in Southern Europe, especially in Italy and Spain? 

What are the challenges, and where lie the opportunities and prospects? Two Coface experts, 

Marcos Carias, economist for Southern Europe, and Christiane von Berg, economist for Northern 

Europe, took a close look at the industry. The two credit insurer’s experts describe their findings 

in an interview with Steel Market European Edition. 

How do you assess the situation in 

the South European steel industry? 

Christiane von Berg: The industry is in a 

very difficult situation worldwide, but 

the steel sector is showing particularly 

worrying signs in Southern Europe. Both 

Spain and Italy have seen their strongest 

monthly decline in output in recent 

times: -26% in August for Italy and -27% 

in December for Spain. Though much of 

this is due to the sluggish state of global 

and European growth, it is worth noting 

that these numbers are even worse than 

during the worst months of the global 

financial crisis in 08-09, or the Eurozone 

crisis in 2011-2013. 

Why is this the case? For one, the 

»disappointing but not quite terrible« 

aggregate macroeconomic figures are 

hiding disparities in manufacturing and 

services. While the services sector has 

remained broadly resilient, the manufacturing 

industry has been suffering 

pressure on several fronts: tightening 

environmental standards, trade shocks 

from Brexit and the Sino-American trade 

war. Notably, the European automotive 

industry has been badly hit, and this is, 

of course, one of the main clients for 

Southern European Steel. Domestically, 

the construction sector has also been 

underwhelming. After showing signs of 

a rebound in early 2019, Italian cons- 

truction activity reverted to its chronic 

sluggishness in the second semester, and 

the signs of a slowdown in the Spanish 

real-estate cycle are becoming increasingly 

clear. And then, of course, there 

are the well-known global trends affecting 

the entire industry: a compressing 

Christiane von Berg 

margin between the prices of inputs 

(iron ore) and the final product, global 

overcapacity. 

Marcos Carias: Finally, there are country-specific 

supply issues, many of them 

related to public policy. In Italy, there is 

this long-standing legal standoff between 

ArcelorMittal and the government 

over the takeover of the former 

Ilva plant in Taranto. For the government, 

the largest plant in Europe is too 

big to fail: 8 000 jobs are on the line. 

But for ArcelorMittal, the plant is too 

polluting to save – it is said to be responsible 

for the city’s above-average 

cancer rates, among other environmental 

externalities. Under the pressure 

of 5-star movement (5SM) lawmakers, 

the government revoked a legal 

shield that protected investors from 

legal liabilities related to environmental 

crimes, convincing ArcelorMittal that it 

was better off backing out of the deal. 

Meanwhile, in Spain, the government’s 

decisive move in the direction of renew- 

able energy will involve a complex transition 

period for the heavy industry 

where energy sourcing will be more 

costly and less predictable. 

Marcos Carias 

Copyright: Coface 

How sustainable is the industry? 

Carias: If we are talking about economic 

viability/activity, these countries 

need a combination of innovation and 

restructuring to restore profitability. 

Global overcapacity looks like it is here 

to stay at least over the medium term, 

and these countries are not cost-competitive 

enough to compete in the 

lower-end market segment. They need 

to consolidate assets and/or move up 

the value chain, but the national policy 

incentives do not help here. 

Regarding environmental sustain- 

ability, it is a very uphill path; indeed, 

as steel is a notoriously polluting industry 

responsible for around 5% of global 

»Spain and Italy have 

seen their strongest 

monthly decline in output 

in recent times: -26% 

in August for Italy and -27% 

in December for Spain.« 

Christiane von Berg, Coface, 

economist for 

Northern Europe 

carbon emissions, and we can only expect 

carbon prices to rise. A lot will 

depend on the progress and pace of 

adoption of cutting-edge technologies, 

for instance, molten oxide electrolysis. 

Support from public institutions will be 



Special 

crucial for incentivising R/D and softening 

the pain of the transition. For 

the Ex-Ilva plant, Taranto qualifies for 

aid from the upcoming European Just 

Transition Fund. Beyond that, it remains 

to be seen if governments and 

the EU will live up to the ambitious 

goals of the European Green Deal. 

Finally, companies facing these kinds 

of challenges cannot afford to ignore 

socio-political sustainability. Every time 

massive layoffs take place; this adds 

fuel to the fire of populism. The counterpart 

is the slow but steady erosion 

of Europe’s technocratic centre; politicians 

that are more likely to favour 

level-headed long-term policies. To go 

back to the Taranto example, investor 

protection would not have suffered so 

brutally if the 5SM was not in office, 

and this is the direct result of stagnant 

living conditions for workers. Of course, 

firms must make adjustments in difficult 

times. However, failing to factor in 

the welfare of workers will eventually 

result in a political backlash, and this 

backlash has a very tangible impact on 

the bottom line. This part of the conversation 

is not exclusive to the steel 

industry; it concerns the business community 

as a whole. 

I do not mean to underestimate 

the hardships of these sustainability 

challenges. I think they are surmountable, 

but it will involve compromises, 

risk-taking and goodwill from all parties 

concerned. 

Copyright: ArcelorMittal 

What do you think are the biggest 

challenges for the industry? 

Carias: In the long run, the biggest 

challenge is to adapt to these structural 

trends in a demanding environment 

that will remain less than ideal. 

Even in the best scenario, the growth 

in demand will be slower than the 

reduction of overcapacity, which makes 

it difficult for companies to make the 

risky investments needed to adapt to 

the sustainability imperatives I highlighted 

before. In the commercial 

sphere, it will also be important to 

diversify the clientele by getting a foot- 

hold in emerging markets with good 

The Spanish situation is less worrying. The picture shows the Spanish plant 

of ArcelorMittal. 

medium-term growth prospects. On dition, but construction is starting to 

the short term, we will have to deal slow down noticeably. The extent of 

with the nasty surprise of the coronavirus 

outbreak. Some weeks ago, it couple of months, but Fiat-Chrysler 

the damage won’t be knowable for a 

looked like a rebound in Germany, has already signalled that it’s looking 

and the easing of trade tensions to close one of its European plants in 

would give the manufacturing industry 

a chance to catch its breath. But in Wuhan. We should note that this 

response to supply-chain disruptions 

Italy just had its worst monthly industrial 

production numbers in two years but will be of a magnitude and it comes 

will be a one-off, temporary setback, 

December (-3.8 year on year), and this in a very bad moment. 

is before the virus started making waves. Things have changed a lot since 2003, 

Spain is in a much better cyclical con- 

but it can be useful to (prudently) use 


Special 


the SARS epidemic as a benchmark. 

Back then, the outbreak cost the Chinese 

economy 1% of GDP, but industrial 

activity rebounded fairly quickly, as 

both the global and Chinese economies 

were riding on a vigorous expansion 

cycle. This time, the initial shock is likely 

to be stronger, and there are fewer reasons 

to expect a rebound. The only silver 

lining for steel producers outside of 

China could be a drop in the global iron 

ore prices resulting from subdued Chinese 

demand. 

Is the industry prepared for them? 

Carias: To varying degrees. At least by 

the region’s historical standards, lever- 

age is relatively low, and this, of 

course, means a certain capability 

to absorb shocks and get back 

on its feet, assuming we eventually 

get a rebound in activity. 

It will be very difficult for 

medium and small-scale operations 

to survive in the long 

term unless they are particularly 

innovative or well placed 

in the value chain; the sector’s 

incentives are aligned towards 

consolidation. We see some reactivity 

in this dimension in Spain, with 

Sidenor allegedly planning to mobilise 

100 million euros for acquisitions in 

the Basque Country region. In Italy, 

nothing of substance is likely to happen 

until the Taranto stalemate gets 

resolved. In any case, either Arcelor- 

Mittal stays and then preparedness 

depends on the wider strategy of the 

group; or they leave, and then Italian 

steel is in for a very significant and 

possibly permanent contraction. 

Where do you see the biggest 

weaknesses and strengths of the 

industry? 

Von Berg: For weaknesses, they cor- 

respond to the challenges we’ve 

covered so far, and I would enumerate 

them as follows: the unavoidable adaptation 

to stricter environmental 

standards, the need for consolidation, 

the unreliability of public policy, global 

overcapacity, sluggish demand. 

Regarding strengths, we must not 

forget that steel remains at the core 

of the European economic project 

and that a healthy domestic steel industry 

is crucial for manufacturing at 

large. I am sure this is not lost on 

policymakers, especially given the 

historical role steel has played in the 

construction of European institutions 

and the single market. If the industry 

is willing to make the necessary changes, 

it would be reasonable for policymakers 

to grade it on a curve without 

sacrificing the long-term objective of 

»Even in the best 

scenario, the growth in 

demand will be slower than the 

reduction of overcapacity, which 

makes it difficult for companies to 

make the risky investments 

needed to adapt to the 

sustainability imperatives.« 

Marcos Carias, Coface, economist 

carbon neutrality. The EU remains, 

for the moment, an institution of 

technocrats, and these are people 

with whom one can reach reason- 

able compromises. 

Despite the high labour and energy 

costs, productivity in terms of output 

was high in Southern Europe 

compared to their northern neighbours 

during the post-crisis expan- 

sion. And while energy in Spain will 

be expensive on the short term, in the 

long term the country will be ahead 

of the curve in achieving a sustain- 

able energy infrastructure and this 

will eventually result in lower costs. 

One only has to look at the stock market 

performance of Spanish renew- 

able energy firms to see that there is 

a future here. 

for Southern Europe 

How do you assess the financial 

situation of the South European 

steel industry? 

Carias: The financials are not the worst 

thing about this sector, at least from a 

bird’s eye view, but here we see a dif- 

ference between Spain and Italy. Lever- 

age in Spain went down steeply after 

the Eurozone crisis and is at what can 

be considered low levels for heavy industry, 

with a net debt ratio of around 

8%, which is in contrast with Italy, where 

leverage bounced back after reaching 

30% in 2011 and now hovers around 

35%. Though this is close to the histo- 

rical norm, it is troubling given the 

decreasing revenue and output. 

What is your outlook: From the 

credit insurer‘s point of view, 

will the South European steel 

industry be a safe business 

partner in the future or 

rather a risky one? 

Carias: We downgraded the Italian 

metals sector to »very risky« 

in our latest quarterly assessment 

review, the strongest risk level on 

our four-level scale, and this situation 

is unlikely to improve in the foreseeable 

future. Risk is also high in Spain, 

given the surprisingly low end-of-year 

figures, but the situation is not yet nearly 

as dire as it is in Italy. 

What would companies have to do 

to be financially stable in the long 

term? 

Von Berg: Consolidate, invest in innovation 

and diversify export markets. 

The industry remains somewhat overexposed 

to Europe and the automotive 

industry. The logical step is to get 

a foothold in African markets, and, 

to a great extent, efforts are already 

underway as Algeria is one of the 

largest export destinations. Africa is 

a place with great opportunities, but 

also great risks (exposure to climate 

risk, political instability), and it is increasingly 

important to be mindful of 

country risk. These are all elements 

that we study with great vigilance at 

Coface. 

• 



Special 

»Consumption level back 

to normal« 

Orders for machine tools took a negative turn 

In 2019, the number of orders for machine tools took a negative turn in Italy. In the fourth quarter, 

the UCIMU index of machine tool orders registered a 16% downturn compared with the same 

period in the previous year. The absolute value of the index was 105.5 (base 100 in 2015). 

UCIMU-SISTEMI PER PRODURRE is the Italian association for machine tool, robots, automation 

systems and ancillary products (NC, tools, components, accessories). 

The overall numbers were affected 

both by the negative performance 

of the domestic market and by 

weak foreign demand. Domestic orders 

showed a 21.2% drop compared with 

the fourth quarter of 2018. The absolute 

value of the index was 172, so despite 

the reduction, still positive. 

Foreign orders dropped by 13.8% 

compared with the October-December 

period in 2018. The absolute value of 

the index stood at 91.5. On an annual 

basis, the total index recorded a 17.9% 

decrease compared with the previous 

year. This result was due to the drop in 

both the domestic (-23.9%) and the 

foreign markets (-15.4%). 

»The downturn registered in the 

fourth quarter of 2019 confirmed our 

expectations,« said Massimo Carboniero, 

President of UCIMU-SISTEMI PER 

PRODURRE. »It shows that people are 

less inclined to invest, both domestically 

and abroad. On the domestic front, 

the index of orders placed in Italy in 

2019 showed a progressive reduction, 

which proves that the Italian consumption 

level of production systems is 

dropping back to what is typical for our 

market. After all, we could not expect 

the Italian demand to maintain the 

growth level we experienced in the 

three years of 2016-2018.« 

»That said, we do need to prevent a 

new freeze on investments, which would 

take our manufacturing industry back 

many years and nullify the good results 

UCIMU-members are focusing on Asian customers, supplying them with for 

example laser cutting tools. 

obtained thanks to the >Industry 4.0< 

Plan, with the risk of interrupting the 

ongoing process of technological transformation 

in our Italian industry.« 

Investments needed 

The results of a survey conducted by 

UCIMU in 2014 on the total number of 

machines in operation in Italy showed 

a dangerous amount of ageing of the 

production systems installed in Italian 

manufacturing facilities. In ten years, 

from 2005 to 2014, the factories in the 

country innovated very little and the 

average age of machines turned out to 

be the highest ever, almost 13 years. 

»Even if the competitiveness tools 

implemented by the >Industry 4.0< 

Plan contributed to recover from that 

obsolescence, we cannot assume that 

everything is solved because, in the 

meantime, our foreign competitors 

keep on investing and we must take 

them in due consideration if we want 

to preserve the competitiveness of the 

Italian manufacturing industry.« 

In this regard, the association thinks 

that the new tax measures included in 

the 2020 Budget Law, in place of Super- 

and Hyper-Depreciation are technically 

suited to support the upgrade of machines 

and equipment and the transformation 

of the Italian industry from a digital 

point of view. What UCIMU does not 

regard as appropriate is their applicability 

period, which is always 12 months. 

»For this reason,« continues Massimo 

Carboniero, »we have requested the 

Copyright: UMICU-SISTEMI PER PRODURRE 


Special 


government to consider immediately 

implementing a new three-year innovation 

plan to support the investments in 

production technologies and have tax 

credits with differentiated rates as a key 

measure. Only in this way, with a mid/ 

long-term plan, can enterprises realistically 

plan their investments and the actions 

to be undertaken to continue the 

process of transformation and the 

upgrade of the Italian manufacturing 

industry, which has started, but it is certainly 

not yet accomplished.« 

Complicated situation 

On the foreign front, the situation is 

– according to UCIMU – very complicated, 

as different factors are contributing 

to the uncertainty of the mid/ 

short-term scenario: the general economic 

and political instability of many 

areas in the world; the evident difficulty 

of Germany, struggling to start 

up again, burdened by the big question 

in the automotive sector regarding 

the development of electric vehicles; 

the sanctions concerning exports to 

important end markets for the enterprises 

working in manufacturing sectors, 

first of all, Russia and Iran; the 

slowdown of China and the protectionist 

behaviour of some important 

countries, such as the United States. 

While waiting for a clearer situation, 

Italian machine tool manufacturers, 

who have always been very flexible 

and quick in reorganising their sales 

in the areas characterised by the most 

dynamic demand, are currently focusing 

specific attention on two continuously 

developing areas: the ASEAN 

countries and India. Involved in a rapid 

and significant process of industrial 

and infrastructural development, 

these areas have no appropriate local 

industry of automation and production 

systems. Therefore, to support 

their pace of development, they must 

acquire state-of-the-art technologies 

from abroad. Made in Italy is a valid 

response to this demand. • 

ArcelorMittal and commissioners 

agree to invest in modernization 

The future of the Ilva steelworks is still uncertain 

In the southern Italian town of Taranto, the steelworkers dare to hope again. ArcelorMittal and 

the Italian government have agreed to invest in modernizing the notorious polluter together. 

This means that both parties have (at least for now) put a stop to ArcelorMittal’s withdrawal from 

the sales agreement. 

Market experts observe that 

the latest turn of events in 

the drama of keeping the 

steelworks Ilva up and running has 

taken some of the pressure off the 

Italian government, which owns the 

plant in Taranto. The Italian government 

wanted to negotiate the request 

for an interim injunction against ArcelorMittal’s 

withdrawal from the sales 

agreement at the civil court in Milan 

on 6 March; however, just a few days 

before the hearing, ArcelorMittal and 

the Ilva commissioners managed to 

reach an agreement. ArcelorMittal 

will go ahead with the purchase of the 

steelworks and the Italian government 

will withdraw its request for an interim 

injunction. Furthermore, both 

sides have agreed to amendments 

made to the original lease and sales 

contract. The new version now includes 

conditions for the Italian government 

to make a substantial equity investment, 

which will be at least as big as 

ArcelorMittal’s remaining liabilities and 

which will have to be made by 30 November 

2020. At the heart of the new 

plan is the investment in carbon- 

reduced steel production technologies. 

Health Hazards 

In early February, the situation still looked 

very different. Investor ArcelorMittal 

had sent a very strong message to 

show how determined it was to reverse 

the purchase of the loss-making Ilva 

steelworks made in November 2018 by 

withdrawing its management team 

from Taranto. The management of the 

largest steel group in the world felt 

justified in using a termination clause in 

the contract. The clause stated that in 

the case of ArcelorMittal’s approximately 

4.2-billion-euro takeover and redevelopment, 

the company wouldn’t have 

to pay for the previous operators’ ecological 

damages until the completion of 

their redevelopment works in 2023. For 

this reason, the government at the time 

promised the Luxembourg-based investor 

»legal immunity«. 

In 2019, the succeeding government 

threatened to take away the steel giant’s 

previously agreed-upon immunity. 

This resulted in ArcelorMittal losing 

interest in investing its own money into 



Special 

In 2018 ArcelorMittal purchased the steelworks. 


transforming the polluter in southern 

Italy into »Europe’s most modern steel 

mill« and turning the polluted and 

polluting factory site into a green oasis. 

This happened even though the first 

step in redeveloping the site had already 

been implemented right after the 

takeover. Back then, ArcelorMittal invested 

300 million euros in a roof for 

the coal and iron ore tips. 

Receivership 

Right from the start, the takeover of 

»southern Italy’s dying colossus« (Tagesspiegel) 

seems to have been ill-fated. 

In January 2019, just a few months 

after ArcelorMittal signed a one-year 

lease agreement for the Ilva mill, the 

European Court of Human Rights 

found Italy guilty of ongoing health 

hazards caused by the steelworks in 

Taranto. Studies revealed that pollution 

caused by the plant had been 

responsible for a rise in cancer rates 

and circulatory diseases in the area. 

After approximately 150 citizens 

living in close proximity to Ilva filed a 

lawsuit, the court in Strasbourg decided 

that Italy had not done enough 

to stop the problem, even though the 

health hazards were well known (ca. 

400 premature deaths and thousands 

of people getting sick). According to 

the verdict, public authorities had 

postponed the implementation of an 

environmental plan from 2014 to 

2023. At the same time, they put regulations 

in place which allowed the 

mill to continue its operation despite 

the known health risks. For the 

200,000 people living in the city at the 

Ionian Sea, it’s like being stuck between 

a rock and a hard place. Most 

people know about the consequences 

of the mill’s large-scale pollution but 

a permanent closure of the region’s 

largest employer would result in 8,200 

people losing their jobs. On top of 

that, another 6,000 jobs would be at 

»Several protest 

rallies held over the past 

few months have shown 

how important the mill is for 

the job market in the 

economically-weak 

region of Apulia.« 

risk at the mill’s 150 suppliers. Several 

protest rallies held over the past few 

months have shown how important 

the mill – which covers an area two 

and half times as big as the city itself 

- is for the job market in the economically-weak 

region of Apulia. 

The corporation’s downfall and 

with it the downfall of the city didn’t 

begin with ArcelorMittal’s takeover 

of the mill. The steelworks started as 

a state-owned enterprise in 1965 just 

outside of Taranto. In 1995, the mill 

was bought by the entrepreneurial 

Riva family from Milan. Due to the 

severe environmental pollution it 

caused, the family lost its management 

rights. An administrative receiver 

was appointed to move forward 

with the redevelopment works. In 

the end, a triarchy of government 

commissioners was supposed to modernize 

the ailing steel juggernaut, 

which back then still had 20,000 employees, 

and to make the necessary 

modifications for it to meet the requirements 

of the fiercely-contested 

and cyclically-fluctuating global 

steel market. 

ArcelorMittal’s takeover (buying 

price: 1.8 billion euros) and the steel 

giant’s announcement to invest 1.2 

billion euros into modernizing and 

another 1.15 billion euros into implementing 

an environmental plan had 

filled operators, employees, and the 

city with the hope that this might not 

be the end. By revoking ArcelorMittal’s 

»legal immunity« from prosecution 

for ecological crimes committed by 

previous operators, the Italian government 

had given the steel giant what 

the press called »a welcome excuse to 

opt out of the project, which within a 

year had become a millstone around 

its neck« (Tagesspiegel). • 


Special 


New combustion system for ArcelorMittal Asturias 

ArcelorMittal Asturias, Spain, has 

awarded SMS group the order to supply 

a new combustion system for the 

existing walking beam furnaces 2N, 

3N and 4N in the Aviles hot strip mill. 

The supply consists of replacing the 

existing burners with the SMS 

EcoFlamePLUS dual fuel burners in 

the zones that will be upgraded and 

converted to basic oxygen furnace 

(BOF) gas utilisation, instead of the 

simple replacement of the gas feeding 

lances. Twenty-two burners will 

be replaced on each furnace. This 

solution will guarantee more efficient 

The modifications will help to decrease 

CO 2 

emissions. 

combustion, an optimal flame mix 

resulting in a reduction of NOx emissions. 

These modifications will enable 

Copyright: SMS group 

ArcelorMittal to drastically reduce 

NOx emissions to lower than 150 mg/ 

Nm3 and decrease global CO 2 

emissions. 

The new burners can be fed 

either with a mix of BOF gas and natural 

gas (NG) or with BOF gas only, 

making the ArcelorMittal works more 

sustainable and environmentally 

friendly. Converting the three furnaces 

to heating and pre-soaking using 

100% BOF or natural gas will maximise 

the BOF gas flow rate in every 

operative condition. Switching between 

the two gases will be performed 

automatically. 

• 

Cloud solution for demand 

Spanish stainless steel producer Acerinox intends to plan demand by the client, product and region. The objective 

is to make a profound change in the company’s supply chain processes by developing a five-year strategic 

plan. This transformation aims to improve customer service and save costs by reducing inventories. Thanks to the 

Oracle Demand Planning Cloud solution, Acerinox will adopt a completely different work method to plan demand. 

The solution, which will add a competitive advantage when it comes to making the corresponding decisions 

throughout the supply chain, aligns itself to the behaviour of the market in real-time. It incorporates statistical 

algorithms that generate a precise forecast for each customer and makes it possible to plan demand by product 

type, by region, by the customer and by channel. All this leads to a reduction in stocks while guaranteeing 

supply. This project is part of the 360º Planning Project that Acerinox is developing together with Minsait, an 

Indra Group consultancy firm, which will redefine how Acerinox manages its supply chain, allowing it to respond 

to market demands in the coming years. RCL Consulting has implemented the Oracle solution. • 

Corinth Pipeworks to supply pipes to Chile 

Corinth Pipeworks Pipe Industry SA has 

been awarded a contract by Anglo 

American Sur S.A. for the manufacture 

and supply of steel pipes for the Los 

Bronces Pipeline Replacement project. 

The contract, covering the pipe material 

for the 35 km slurry pipeline in Chile, 

includes the supply of 24” LSAW pipes in 

heavy wall thickness up to 31.75 mm and 

three Layer Polyethylene (3LPE) Coating. 

The overall quantity of 13,700 Tn of steel 

pipes will be manufactured at Corinth 

Pipeworks’ plant in Greece in 2020. The 

pipeline is located in the Andean Mountains 

at an average altitude of 3,500 m 

above sea level, and the pipes will require 

extremely strict geometrical 

tolerances to ensure uniform flow 

through the entirety of the pipeline. • 

The contract covers 35 km slurry pipeline. 

Copyright: Corinth Pipeworks 



Special 

Raccortubi Norsk appoints new Managing Director 

Raccortubi Norsk, the UK branch of 

Raccortubi Group, based in Aberdeen, 

has appointed Andy Troup as Managing 

Director. »The internal reorganisation 

comes inevitably after the 

steady growth of the branch since its 

acquisition in 2015 and will promote a 

further successful step in the history 

of the company,« the company states. 

Peter Ray will remain on the Board of 

Directors and will be actively focused, 

more than ever before, on the commercial 

relationship with key customers, 

frame agreements and complete 

projects handling. Andy Troup has 

been giving his contribution to the 

Andy Troup (right) and Peter Ray 

company for more than two years 

now, as Business Development Manager, 

building a good knowledge of 

the internal offering of Raccortubi 

Group and developing important 

relationships with current and new 

customers, while at the same time 

Marcegaglia acquires Palini & Bertoli 

progressively dealing with more operational 

issues. »We are always fine-tuning 

our internal resources to 

support our continuous growth, aiming 

at providing the best service to 

our clients by guaranteeing continuity 

to Raccortubi Norsk’s operations,« 

says Luca Pentericci, President of Raccortubi 

Group. »We wish to thank 

both Peter and Andy for their commitment 

and the new enthusiastic 

challenges ahead. Please join us in 

congratulating Andy Troup as he takes 

on these new responsibilities.« 

The reorganisation has been fully 

effective since 1 January 2020. • 

Marcegaglia is a global industrial group in the steel processing sector with a turnover of more than 5.3 billion 

euros. Through Marcegaglia Plates, a company dedicated to heavy quarto plates rolling, the group finalised the 

purchase of 100% of the capital of Palini & Bertoli from the Russian company Evraz. »Palini & Bertoli Srl is an 

important company in the sector, with a production capacity of 500,000 tons per year, developed on a wide 

qualitative and dimensional range,« Marcegaglia states.The new acquisition, which is part of the strategy to 

strengthen its presence on the European market, will lead the Marcegaglia group to be one of the leading 

players in heavy quarto plates rolling, with a total production of 1 million tons per year. 

• 

Copyright: Raccortubi 

Caleotto: Feralpi to take over Duferco’s holding 

The Feralpi Group will be taking over 

the 50% share currently held by Duferco 

Italia Holding in the Lecco company 

Caleotto SpA, thereby obtaining 

full control. The new arrangement is 

awaiting the formal approval of the 

Anti-Trust Authority. Five years after 

forming the equal joint venture that 

led Feralpi and Duferco to taking over 

and relaunching the major rolling mill 

in Lecco, situated in the centre of a 

well-established drawing mill district 

devoted to export, the share structure 

will change. This decision is a result of 

the industrial development taking 

place in both groups. Feralpi has significantly 

developed in the special steels 

sector, i.e. the wire rod produced by 

Caleotto, which is considered to be a 

strategic sector for the Group. Duferco 

has major investments in progress 

relating to the rolling mill process for 

beams and rolled products, including 

a new rolling mill in Brescia, where it 

has focused its resources. The operational 

partnership between the two 

companies will not end. The continuity 

of the production plant will be ensured 

despite a weak reference market, 

i.e. the automotive sector first 

and foremost. The Caleotto rolling 

mill will be continuously replenished 

with billets (the semi-finished product 

that supplies the rolling mill process) 

from both the Feralpi Group, through 

Acciaierie di Calvisano, and the Duferco 

Group to ensure consistency in industrial 

operations. »For the Feralpi 

Group, taking over Caleotto means 

entering a market with high added 

value, in line with the aim to make 

the special steel business unit a pillar 

of the strategic development plan,« 

explains Lorenzo Angelini, Caleotto’s 

Managing Director. »Not only does 

Caleotto represent a rolling mill of 

longstanding tradition where Feralpi 

and Duferco have invested in innovative 

technologies, but it also encompasses 

a set of skills that make it a 

competitive business on the national 

and international stage,« he continues. 

»We have worked closely with the 

Feralpi Group in the past five years,« 

commented Domenico Campanella, 

Managing Director of Duferco Italia 

Holding. »It is a Group we hold in very 

high esteem and will continue to 

work with, by supplying Caleotto with 

our billets. We have come to know 

the Lecco area as a district with considerable 

steelmaking experience and 

have engaged with customers based 

locally and further afield, developing 

solid partnerships due in part to extensive 

plant investment.« • 


Special wire & Tube 2020 

New date for wire and Tube 

Düsseldorf 

Trade fairs will take place from 7 to 11 December 2020 

The world‘s leading international trade fairs for the wire, cable, tube and pipe industry, wire and 

Tube, will take place from 7 to 11 December 2020 at Düsseldorf Fairgrounds. This is Messe 

Düsseldorf‘s timely response to the postponement of the industry highlights announced at the 

end of February. It was agreed in consultation with all partners involved in order to counteract t 

he increasingly dynamic developments regarding the possible spread of the coronvirus. 

It is very important for us to inform 

you of this new date as soon as possible 

in order to ensure planning 

security for the entire industry and its 

partners,« says Wolfram N. Diener, 

Managing Director of Messe Düsseldorf 

GmbH, and adds: »Our customers 

and partners can trust us to act calmly 

and responsibly even in difficult situations.« 

Messe Düsseldorf GmbH: »Existing 

contracts with Messe Düsseldorf remain 

valid for the new date, visitor 

Messe Düsseldorf 

GmbH postpones the 

trade fairs wire and 

Tube Düsseldorf. 

»Our customers 

and partners can 

trust us to act calmly 

and responsibly even in 

difficult situations.« 

tickets already purchased remain valid 

as well. 2,600 exhibitors in 15 halls 

are expected to present their latest 

machinery and equipment for wire 

and tube production, processing and 

finishing, end products, products and 

services.« 

Wolfram N. Diener, 

Managing Director of 

Messe Düsseldorf GmbH 

The Düsseldorf hotel industry is also 

sending out an important signal through 

its umbrella organisation DEHOGA 

(Trade Association for the Hospitality 

Industry): »We appeal to our members 

and the entire industry to be flexible 

when it comes to rebooking by exhibitors 

and visitors. The Düsseldorf 

trade fairs such as wire and Tube play 

an enormously important role for the 

city, the hotel industry and the cater- 

ing trade. It would be counterproductive 

not to show goodwill in this situation,« 

as both DEHOGA-Representatives 

Giuseppe Saitta (Chairman Düsseldorf/District 

Group Rhein-Kreis 

Neuss) and Rolf D. Steinert (Düsseldorf/ 

Rhein-Kreis Neuss Hotels and Tourism 

Group) emphasize. • 

Copyright: Messe Düsseldorf / ctillmann 



Special 

Energy is increasingly becoming a key cost factor for companies. 

Energy-efficient systems 

for heat transfer are in demand 

WTT-Expo – A trade fair for Industrial Heat Exchangers and Heat 

Transfer Technology 2020 to debut in Düsseldorf 

Industrial heat recovery, industrial heat exchangers, and heat transfer technology systems are 

the focus of WTT-Expo, the international trade fair to be held for the first time as part of Tube 

Düsseldorf at the Düsseldorf Exhibition Centre. 

Energy-efficient systems for heat 

transfer are in demand: energy 

is increasingly becoming a key 

cost factor for companies. As a result, 

especially manufacturing companies 

are again investing more in energy 

efficiency. According to the current 

»Energieeffizienz-Index (EEI)«, almost 

three-quarters of all companies spend 

more than 10% of their total investment 

on this. 

At WTT-Expo exhibitors from the 

industrial heating and cooling technology 

sectors will again demonstrate 

how companies can produce at optimised 

costs while making a sustainable 

contribution to minimising emissions 

at the same time. 

Sustainable contribution to 

minimising emissions 

Reason enough for Messe Düsseldorf 

to hold the three-day WTT-Expo as 

an independent trade fair in Hall 7.1 

as part of Tube 2020. The organisation 

expects exhibitors from Germa- 

Heat Recovery Steam Generators (HRSG) and pipeline at a power plant 

ny and the neighbouring countries 

to attend WTT-Expo. They will display 

equipment, apparatus, products 

and services from industrial heat 

exchanger and heat transfer technologies. 

this trade fair ranges from planning 

and construction to the complex 

area of maintenance. Admission to 

WTT will be free for visitors of the 

concurrently held trade fairs wire 

The comprehensive line-up of and Tube. 

• 

Copyright (2): Shutterstock 



Shanghai 

wire+Tube – a brief history 

of a worldwide success 

Copyright (6): Shutterstock 

Eleven international satellites have now been established 

throughout the world 

Trade fairs for metal production, metal processing and finishing, for wire, cable and tubes, iron and 

steel can look back on a long tradition in Düsseldorf. 

Wire and Tube have been 

held jointly in Düsseldorf 

for over 30 years now. The 

No. 1 trade fairs for their respective 

industries, they have built a reputa- 

Mumbai 

tion for themselves as international 

top players in their industries far 

beyond the borders of the North Rhine- 

Westphalian capital of Düsseldorf. 

They have contributed to the excellent 

reputation that the Düsseldorf business 

hub has built as a platform for 

industrial innovations around the globe. 

Eleven international satellites have 

now been established throughout the 

world for the wire and tube sectors. 

These include – alongside the »mothership« 

trade fairs wire and Tube Düsseldorf 

– the satellites wire China and 

Tube China in Shanghai, wire and 

Tube India in Mumbai, wire and Tube 

Russia in Moscow, wire and Tube 

Southeast Asia in Bangkok, wire South 

America and Tubotech in Sao Paulo as 

well as the Tube & Pipe Producers and 

Suppliers Pavilion at Fabtech in Chicago. 

A worldwide portfolio with 

further growth potential… 

Add to this the international trade 

conferences of the associations Cabwire 

for wire, and the ITA-Conference 

for Tube, held at the congress centres 



Special 

on Düsseldorf exhibition premises 

every two years. 

Moscow 

Metals and Flow Technologies 

worldwide 

The top event for the key players in the 

wire related industries is organised by 

the international associations IWMA 

(International Wire & Machinery Association) 

and IWCEA (International Wire 

and Cable Exhibitors Association). ITA, 

the only tube association active worldwide 

(Intermational Tube Association) 

holds the ITA Conference (Tube). 

Since 2010 the Valve World Expo trade 

fair has also been held in Düsseldorf 

and has enjoyed growing success. As 

the leading trade fair for industrial 

fittings and valves it now boasts established 

satellites in the USA and China. 

As regional trade exhibitions with 

conference the Valve World Expo 

Americas in Houston and the Valve 

World Expo Asia in Shanghai have 

developed into key players for their 

industries in the respective countries. 

Metals and Flow Technologies 

worldwide – this is the slogan describing 

the international portfolio of 

wire, cable and tube trade fairs, which 

has been complemented by the international 

world expo for industrial 

valves (Valve World Expo) since 2010. 

In addition to this, the industry highlights 

Gifa/Metec/Thermoprocess and 

Newcast are held at Düsseldorf Exhibition 

Centre every four years. • 

Sao Paulo 

Bangkok 

Chicago 



Copyright: AUDI AG 

Audi Hungaria starts series production of electric motors. 

Increasingly electrified 

Suppliers of the wire and cable industry see e-mobility 

as an opportunity 

According to the German Association of the Automotive Industry (VDA), electric vehicles are 

suitable for the market. A »young, still small market with high dynamics« has developed around 

e-cars – even though vehicles with combustion engine technology currently still dominate the 

global automotive market. Suppliers of the wire and cable industry are already picking up speed 

and see e-mobility as an opportunity. 

The market potential is enormous,« 

Wafios emphasises. »Accordingly, 

the forecasts are positive.« 

For this reason, e-mobility already 

became the focus of the company‘s 

attention some years ago. »Technical 

triggers were enquiries from the automotive 

sector, both on the OEM side, 

supplier level and in the equipment 

sector about three years ago,« explains 

the supplier of machines for 

bending wire and tubes. E-mobility 

picked up speed. 

However, the industry is still »clear 

and concentrated on a few market 

participants,« explains Wafios. According 

to AlixPartners Global Automotive 

Outlook 2019, the global market 

share of electric drive units in terms 

of vehicles sold amounted to 2.7 per 

cent in 2018. A share that is clearly 

expandable, which is shown by the 

growth rate of the e-drive of more 

than 65 per cent. Thus, according to 

Outlook 2019, the market is speed- 

ing ahead »in the irreversible market 

run-up«. 

Faster than expected 

According to the VDA, electric mobility 

is coming faster than many expect. 

One reason is, for example, the tight- 

ening of regulations and the improved 

incentive systems for electric mobility 

to reduce CO 2 

emissions. For example, 

there will be no new registrations for 

conventional drives in Norway from 

2025—the sale of electric cars will be 

promoted with massive tax incentives. 

The Netherlands, Ireland and Israel 

want to use only emissions-free vehicles 

from 2030. A sales ban on combustion 

engines is planned from 2040 

in Great Britain and France. In the USA 

some states, such as California, plan to 

permit only emissions-free cars from 

2040. To get their act together, suppliers 

have to target these figures. 

Drastic increase in hybrids 

and electric vehicles 

Globally, a drastic increase in hybrids 

and electric vehicles can be expected 

between 2020 and 2025. The VDA predicts 

that »by 2030 a production share 

of electrified vehicles of 60 per cent or 

more worldwide is likely«. China will 



Special 

be a pioneer here – every third vehicle 

could be fully electric by 2030. In Western 

Europe, the share could rise to 25 

per cent due to stricter regulations 

and driving bans. According to the 

association, a breakthrough in Africa 

and South America is not to be expected 

so soon. For Japan, Korea and 

North America, a share of hybrid vehicles 

of around 80 per cent would be 

conceivable. The car world electrified 

– a realistic view. 

Huge investments 

Car manufacturers and automotive 

suppliers must, therefore, make massive 

investments. The AlixPartners Global 

Automotive Outlook 2010 reports 

that at least 202 billion euros will have 

to be spent globally over the next five 

years to master the technological change 

to the electric drive and the development, 

production and marketing of up 

to 300 planned new e-vehicles. »The 

level of investment is still out of all 

proportion to demand,« says Dr Elmar 

Kades, Global Co-Lead Automotive 

and Managing Director at AlixPartners. 

At the same time, the current 

and expected weak sales development 

for the next few years will increase the 

short-term pressure on the margins 

and cash flows of the suppliers, Kades 

continued. Weak sales and massive 

investments therefore coincide. 

Even though the situation is challenging, 

the wire and cable industry 

remains optimistic. »Electrically powered 

vehicles promise higher sales for 

our company because more or higher 

quality cables are needed,« explains 

Leoni. Hybrid vehicles, in particular, 

which contain both an electric and a 

combustion engine, require a higher 

product share from the company. 

High-quality cables are required in 

various areas of the electric car: from 

the charging cable and the charging 

station to the vehicle system, and 

from the charging connection to the 

battery. Lines also transport the electricity 

via the inverter to the electric 

motor. The internal wiring supplies 

other high-voltage components, such 

Electric mobility is coming faster than many expect. 

as air-conditioning compressors or 

electrical heating, with energy. An 

electrifying outlook... 

Battery cabling and connector 

systems 

Leoni is focusing, in particular, on the 

high-voltage battery as an energy storage 

device for electric vehicles and 

plug-in hybrids. The company concentrates 

primarily on data and power 

distribution within high-voltage batteries. 

»We assume that the HV battery 

in future vehicles will contain 

parts of the previously exposed 

high-voltage cable harness due to its 

large-area arrangement.« The aim is 

to offer customers system solutions for 

battery cabling from a single source. 

A look at the powertrain of the BMW 

225xe. The electric motor of the plug-in 

hybrid vehicle BMW 225xe iPerformance 

won the Bavarian State Prize for 

E-Mobility. 

Copyright: BMW Group 

Together with its partner Diehl, the 

company is working on offering complete 

solutions. Already established 

products of both companies in areas 

such as cabling, connector systems and 

cell contacting would be combined to 

form a complete package. This means 

that sustainable strategies are needed. 

Products and processes are 

changing 

Changing times require flexible suppliers 

– the right curve position is crucial. 

You must bear in mind that the 

exhaust gas and fuel system, the combustion 

engine and the low-voltage 

vehicle electrical system are not required 

for the less complex electric drive. Instead, 

they must adapt to electric motors, 

cooling systems for electronics 

and batteries, chargers, a high-voltage 

electrical system and a PTC heater; 

components that sometimes require 

high-performance wires and cables to 

prevent vehicles from stuttering. 

The changes associated with the 

switch from combustion to electric 

vehicle technology are therefore fundamental 

and affect products and 

processes. To continue on the road to 

success, the wire and cable industry 

must flexibly steer in the right direction. 

Then it will head full speed towards 

high profits. • 

Copyright: Pixabay 



Worldwide 

Making steel in the 2020s 

Guest article by Edwin Basson 

As we enter not just a new year but a new decade, the steel industry continues to face its traditional 

challenges - overcapacity, restructuring and trade frictions to name just a few. In addition, 

a number of other pressures will become increasingly significant. Edwin Basson, Director General 

of global steel association worldsteel takes a look at issues that will caracterise the decade. 

Our customers and society at 

large are demanding greater 

transparency and accountability 

in all aspects of our work, especially 

with respect to safety, environmental 

and labour standards. 

The tragedy at the Brumadinho 

iron ore mine in the early part of last 

year highlights the importance of this 

work to the steel industry in particular. 

Responding to pressure from their 

own customers, the construction, automotive 

and other sectors want to 

know more and more about how our 

products are made and where and 

how we source our raw materials. 

Swedish climate activist 

Greta Thunberg attending 

Fridays For Future (School 

Strike for Climate) protest 

in front of a huge crowd near 

the Colosseum in Rome. 

Copyright: Shutterstock 

Supply chain management and 

reporting will become a critical 

part of our industry’s licence to 

operate. 

Indeed, we may see our raw material 

suppliers wanting to work with us 

more closely than ever before to show 

their stakeholders that we are using 

their products responsibly. 

worldsteel’s Sustainability Reporting 

Expert Group has developed a 

matrix for our 30 most important material 

inputs and their associated sustainability 

risks depending on where 

they are sourced from. 

In the new year we will be widening 

the scope of our work on steel 

scrap, something that will become 

increasingly important this decade as 

the availability of scrap increases and 

we see a higher percentage of global 

crude steel produced by recycling 

scrap in electric arc furnaces. 

The activism of Greta Thunberg, 

Extinction Rebellion and others 

has heightened public awareness 

of climate change. 

Having worked with worldsteel for 

some time now, the International 

Energy Agency (IEA) will this year publish 

its technology roadmap for the 

steel industry, which will set out a strategy 

for decoupling increases in steel 

production from related CO 2 

emissions. 

We as an energy intensive sector with 

hard-to-abate CO 2 

emissions will have 

to clearly explain why decarbonising 

the global economy will be a steel-intensive 

process. 

It will partly depend on our 100% 

and infinitely recyclable material. We 

will also have to communicate the capital-intensive 

and technically demanding 

work our members are doing in 

developing breakthrough technologies 

that will see virgin steel produced with 

net zero carbon. This includes technologies 

that reduce iron ore with renew- 

ably-produced hydrogen and which 

thus reduce the need for coking coal. 

Although such technologies will 

likely not be commercially viable in 

the next decade, worldsteel, through 

its step up programme, will in the 

meantime work with its members to 

drive short and medium-term process 

efficiency gains in raw material quality, 

energy efficiency, process yield 

and process reliability, all of which 

will reduce the industry’s impact on 

the climate. Our industry is already 

making headway in responding to 

these new pressures, but there remains 

much to do. Fortunately, both 

the steel industry and steel as a product 

already play an important role in 

driving the sustainability that society 

expects. 

• 


Worldwide 


Nucor selects Danieli and SMS 

group for greenfield plate mill 

Kentucky: Nucor Corporation is investing in a new mill 

Nucor Corporation is investing in a new greenfield USD 1.35 billion plate mill in Brandenburg, 

Kentucky. The company says that the mill will have a capacity for 1.2 million short tons per year. 

It is expected to come online in 2022. 

This strategic investment will enable 

us to build a clear market 

leadership position in the US 

plate market,« says Nucor CEO John 

Ferriola. »Kentucky is an excellent 

location for this mill, right in the centre 

of America‘s largest plate-consuming 

region. Our acquisition of the 

Gallatin sheet mill in Ghent, Kentucky, 

five years ago has been a tremendous 

success, and we are pleased to add a 

second mill in the state.« Nucor currently 

operates plate mills in North 

Carolina, Alabama and Texas. 

Nucor estimates that the new mill 

will give the company the ability to 

satisfy 97% of the US’ plate requirements 

by product »... including the 

specialty higher-margin products.« 

The mill’s capabilities will range from 

60-160 inches in width, with thick- 

nesses of 3/16-14 inches. 

Casting of steel in special sizes 

Danieli will supply the new electric arc 

furnace (EAF) melt shop and plate-/ 

Steckel-mill, as well as an electrical 

and automation package provided by 

Danieli Automation. The value of 

Danieli supply is approx. USD 330 million. 

The EAF will be a full platform 

design with an EBT tapping system, 

equipped with all modern mechatronic 

devices to improve the performance 

and the safety of the EAF, such as 

Q-Melt and Zero Man Turn Around. 

Danieli will also supply secondary 

metallurgy equipment, including a 

twin station LMF and a twin station 

From left: Keith Watson, 

SMS group Inc. Vice President; 

Burkhard Dahmen, SMS group GmbH 

President & CEO; John Ferriola, Nucor 

Chairman and CEO; Leon Topalian, 

Nucor President & COO 

VTD equipped with mechanical 

pumps. Both units will be equipped 

with the latest automation and process 

models to ensure precise chemistry 

and temperature control while 

minimising transformation costs. 

The plate-/Steckel-mill will be 

equipped with two stands: a roughing 

mill and a Steckel-mill, where the 

roughing mill will also be designed 

for the rolling of 36" ingots. The complete 

design of the plate mill will be 

optimised to produce thermo-mechanical 

rolled plates, production of 

API-grades, as well as high hardness, 

wear-resistant plates up to a rolled 

width of 160" and coils up to a rolled 

width of 125". After the Plate-/ 

Steckel-Mill mill, the latest EVO 5 hot 

leveller designed for two different 

types of cassettes and a plate finishing 

and shearing line for the handling 

and cutting of 250 ft mother plates 

will follow. The final product will be 

plates and heavy plates in a thickness 

From left: Giacomo Mareschi Danieli, 

Danieli CEO; Gianpietro Benedetti, 

Danieli Chairman; John Ferriola, 

Nucor Chairman and CEO; Leon Topalian, 

Nucor President and COO, Paolo 

Losso, Danieli Corporation President 

About 

About Nucor Corporation 

Nucor Corporation is America’s 

largest steel and steel 

products maker, with approximately 

27,000 employees at 

25 steel mills and more than 

300 operating facilities throughout 

North America. 

Last year, Nucor produced 

more than 24.7 million tonnes 

of steel and more than USD 

25 billion in revenue. Nucor is 

also North America’s largest 

recycler, using scrap steel as 

the primary raw material in 

producing its steel and steel 

products. In 2018, the company 

recycled approximately 

22.2 million net tonnes of 

scrap steel. 



Worldwide 

range of 3/16“ up to 14“ and coils 

from 3/16“ up to 1“. 

SMS group will supply a singlestrand 

caster for ultra-wide and thick 

slabs. Accroding to the company, it will 

be designed for an annual capacity of 

1.6 million short tons, and will be a 

core element of the production chain 

of the new facility in Brandenburg. The 

casting machine will be one of the 

largest casters worldwide, SMS group 

states. It will produce slabs of 8 to 12 

inch (200 to 305 millimeter) thickness 

up to 124 inch (3,150 millimeter) width. 

Slab lengths vary from 104 to 600 inch 

(2,642 to 15,240 millimeter). 

Technological features include include 

robotic applications on the 

casting platform and an HD mold 

with fiber optics and electromagnetic 

stirring. In addition, a customized 

roller apron, a quenching unit 

and a secondary cutting line will also 

be incorporated. An integration test 

with virtual 3D production and active 

participation by Nucor personnel 

will take place in the SMS test field. 

To meet Nucor’s challenging project 

objectives, several special technological 

features will be incorporated 

into the new vertical bending caster, 

SMS emphasises. These include robotic 

applications on the casting 

platform and an HD mold with fiber 

optics and electromagnetic stirring. 

In addition, a customized roller 

apron, a quenching unit and a sec- 

ondary cutting line will also be incorporated. 

• 

Responsible Steel across Europe 

ArcelorMittal aims to produce steel in a climate-neutral manner 

In November, the company announced plans to roll out a new sustainability programme across 

Europe, aiming to secure ResponsibleSteel site certification for all its ArcelorMittal Europe – 

Flat Products sites. The 12-month programme will enable each site to prove that its production 

processes meet rigorously defined standards across a broad range of social, environmental and 

governance criteria. 

Scheme: 

DRI through 

hydrogen 

ResponsibleSteel is the industry’s 

first global multi-stakeholder standard 

and certification initiative, 

dedicated to defining and promoting 

responsible practice, aimed at improving: 

• Climate change and greenhouse 

gas emissions 

• Water stewardship and biodiversity 

• Human rights & labour rights 

• Community relations and business 

integrity 

The standard is based on 12 principles 

with a variety of criteria and underlying 

requirements. To become ResponsibleSteel 

certified, each site will 

undergo a rigorous third-party audit 

with an independent Certification 

Committee, making the final certification 

decision. »Given the strong investments 

we have already made towards 

low carbon and environmental standards 

across our sites, I’m confident 

that we should secure certification in 

each of our Flat Products sites within 

the timeframe,« says Geert Van Poelvoorde, 

CEO ArcelorMittal Europe – 

Flat Products. The first wave of auditing 

includes sites in Belgium, Germany, 

Spain and France with others to 

follow. After the initial phase, further 

ArcelorMittal sites around the world 

will be part of the programme. In 

2020, ResponsibleSteel will launch a 

standard for the certification of steel 

products, which will include stringent 


requirements for raw materials supply 

chain. ArcelorMittal will continue to 

play an active role in developing this 

aspect of the programme. 

12 principles 

At the Blechexpo fair, Jochen Grünewald 

of ArcelorMittal Commercial Germany 

GmbH gave a comprehensive 

overview of the company’s ambitions 

for greener steel production in Europe. 

He identified three ways to green steel: 

• Clean electricity as the source of 

energy for steel production using 

hydrogen produced using electrolysis 

• Carbon in the circular economy 

Recycling of biodegradable and plastic 

ways from households and industrial 

sources 

• Using fossil fuels with capture and 

storage of carbon (CCS) to pave the 

way for a low-emission steel production 

In addition to energy efficiency, the 

company promotes more use of scrap 


Worldwide 


in the region where it is active. In Europe, 

it is currently investing EUR 250 

million in technologies for the reduction 

of emissions. Also, it pledges political 

commitment so that policymakers 

»understand and promote the transition 

to a future of low emission.« 

Lighthouse project in Hamburg: 

DRI through hydrogen 

At ArcelorMittal Hamburg, Germany’s 

only mill with direct-reduced-iron 

(DRI) technology, the group targets 

the use of alternative feedstocks and 

the conversion of CO 2 

emissions involving 

hydrogen. The new hydrogen- 

based process aims to be able to produce 

steel with the lowest CO 2 

emis- 

sions. The project costs amount to 

around EUR 65 million (USD 73 mil- 

lion). The hydrogen-based reduction 

of iron ore will initially take place on 

a demonstration-scale with an annual 

production of 100,000 tonnes. The 

process is first tested with grey hydrogen 

(generate d at gas separation) to 

allow for economical operation. In the 

ArcelorMittal claims that the existing Midrex plant in Hamburg is the one with the 

lowest CO 2 

emission in quality steel production in Europe. It converts 980,000 

tonnes of iron ore pellets into sponge iron, which consists of 95% pure iron. 

future, the plant should also be able using hydrogen as a reduction agent 

to run on green hydrogen (generated is that we go for industrial production 

from renewable sources) when it is right away,« the CEO for Germany, 

available in enough quantities. »The Frank Schulz said at the announcement 

difference to earlier similar projects 

of the project in spring. • 

Italian steel production declines 

According to the latest figures published by the Federacciai 

Association, the 2019 Italian crude steel production 

was 5.2 per cent down on the previous year. This 

means that the decline was higher than forecast in 

October, caused by a very weak fourth quarter. In 

2019, crude steel production in Italy amounted to 

23.2 million tonnes. This represents a decline of 5.2 

percent compared to 2018. Production of long products 

fell by only 0.8 percent to 12.3 million tonnes. In contrast, 

flat products declined by 4.8 percent to 10.6 million 

tons. December saw a 35 per cent decline in flat products. 

The decline in long products was 5.8 per cent in 

the last month of 2019. Total crude steel production 

was down 17.3 per cent. In 2016, 2017 and 2018, the 

corresponding production figures were still rising. Only 

flat products showed slight declines in 2017 and 2018. 

Some steel producers took advantage of the weaker 

economy at the end of the year for maintenance work, 

which led to production stoppages. The uncertainty 

surrounding the Ilva plant also had a negative impact 

Maintenance work at Arvedi has contributed to the decline 

in the manufacture of flat products. 

on production figures. A decision on how to proceed 

with the ArcelorMittal plant will be taken in spring 

(see also page 16). Market observers expect the situation 

to ease slightly in the first few months of this year, 

as the retail sector wants to replenish its stocks. • 

Copyright: Arvedi 



Worldwide 

World’s largest pilot plant for the 

CO 2 

neutral production of hydrogen 

H2FUTURE: voestalpine‘s »green« hydrogen pilot facility commences 

operation 

The world’s largest pilot plant for the CO 2 

neutral production of hydrogen has successfully 

commenced operation at the voestalpine‘s site in Linz. It is simultaneously setting an international 

mark in the advancement of new energy supply options. 

As part of the EU-funded 

H2FUTURE project, main partners 

voestalpine, energy utility 

VERBUND and Siemens are researching 

the industrial production of 

green hydrogen as a means of replacing 

fossil fuels in steel production 

over the long term. 

The new plant has a capacity of 

over 6 megawatts, and is currently 

regarded as the most effective and 

state-of-the-art facility of its type. It 

will be used to test whether the technology 

deployed to produce green 

hydrogen is suitable for use on an 

industrial scale. Furthermore, the project, 

which receives EUR 18 million 

(USD 20 million) in EU funding, will 

investigate the potential to provide 

network services, and potentially 

compensate for fluctuations in the 

power grid. 

The high-tech heart of the plant, the Siemens Silyzer 300, has a capacity of six 

megawatts, and can generate 1,200 cubic meters of green hydrogen. 

Copyright: voestalpine 

Siemens regards hydrogen 

essential for a climate-neutral 

industry 

voestalpine is currently investigating 

the practicality of a hybrid technology 

to bridge between the existing coke/ 

coal-based blast furnace route and 

electric arc furnaces powered with 

green electricity partly generated 

using green hydrogen. »The most important 

precondition for scenario 

planning based on green electricity 

and green hydrogen is, however, sufficient 

quantities of renewable energy 

available at commercially realistic 

prices. This is the only way in which we 

can apply tomorrow’s technologies in 

a truly competitive manner,« voestalpine 

CEO Herbert Eibensteiner says. 

»Siemens has a history of focusing 

on clean energy, including its generation, 

distribution and application. This 

plant uses renewable energy to split 

water into its constituent parts – hydrogen 

and oxygen. The process creates 

a huge potential to decarbonize 

the energy and economic system and 

make it more flexible,« says Wolfgang 

Hesoun, CEO of Siemens Austria. 

Electrolysis can also be used to support 

the power grid, by extracting 

excess power from the grid as required. 

This is an important factor in light of 

the increasing fluctuations in power 

generated by renewables. Furthermore, 

responsive electrolysers can be 

used to provision power grids, offering 

services for increasingly overloaded 

transmission networks. »H2FU- 

TURE is a prime example of cross-sector 

cooperation generating added 

value«, says Wolfgang Anzengruber, 

CEO of Austrian utility VERBUND. 

»The use of green hydrogen is both a 

win-win situation for power generation 

and industry, and a perfect example 

of sector coupling through 

electrification.« 

• 


Worldwide 


SSAB‘s Raahe mill in Finland 

will be the group‘s pilot works. 

Copyright: SSAB 

SSAB initiates study in Finland 

The next step for a completely fossil-free steel value chain 

SSAB has announced that it is launching a study in Finland for fossil-free steelmaking. In line with 

the HYBRIT project, SSAB is taking the next step for a completely fossil-free steel value chain. 

In partnership with Gasum, Neste 

and St1, SSAB is initiating an Energy4HYBRIT 

pre-feasibility study supported 

by Business Finland to investigate 

the use of fossil-free energy sources, 

primarily biomaterial side-streams, 

to replace fossil fuels in certain steelmaking 

processes, for example rolling 

processes. The Raahe mill will act as 

SSAB’s pilot. 

The HYBRIT initiative, owned by 

SSAB, LKAB and Vattenfall, aims to 

replace the coke used in iron ore-based 

steelmaking with hydrogen. Ironmaking 

accounts for around 90% of 

SSAB’s carbon dioxide emissions. The 

new process would emit water instead 

of carbon dioxide. Laboratory tests 

and a pre-feasibility study have shown 

that the process works and the pilot 

plant being built in Luleå, Sweden will 

be completed in 2020. The aim of the 

initiative is an ambitious one and will 

potentially reduce Sweden’s carbon 

dioxide emissions by 10% and Finland’s 

by 7%. 

Hydrogen instead of coke 

»The Finnish effort is an important 

step in our ambition to become fossil-free 

in all our operations. Together 

with our partners, we will introduce 

a completely fossil-free value chain 

from the mine to the finished steel 

products. We are aiming to be the 

first in the world with fossil-free 

steels to the market in 2026«, says 

Martin Lindqvist, CEO and president 

at SSAB. 

»The joint Energy4HYBRIT project 

focusses on the remaining 10% of carbon 

dioxide emissions originating 

from numerous other steelmaking 

processes, excluding than ironmaking. 

One of the main aims in the pre-feasibility 

study will be to explore the 

possibility to use fuels other than fossil 

fuels in these processes. Regarding 

biofuels, the project will study the 

possibilities of collecting, transporting 

and utilizing felling and other biowaste 

and sidestream products from 

the Baltic Sea region,« says Harri 

Leppänen, Environment and Safety 

Director at SSAB. 

The University of Oulu and VTT 

will study and model all the energy 

flows at the works. The energy companies 

involved in the pre-feasibility 

study are looking into the use and 

availability of alternative energy 

sources. The study will be finished in 

May 2020. 

• 



Worldwide 

The post-fossil age will still require energy.Wind turbines 

Copyright: Shutterstock 

Phase-out of mineral oil / 

phase-in of metals? 

In Potsdam experts discussed how to synchronise the two phases 

A farewell is, at the same time, a new beginning. The phase-out of fossil fuels is long overdue in 

terms of climate policy. The active phase-out of fossil oil also requires a start, an active phase-in of 

even more metals. A one-day symposium was set up by the Institute of Advanced Sustainability 

Studies (IASS) in Potsdam to discuss how to synchronise the two phases. 

The post-fossil age will still require 

energy, and electrical energy 

will be of primary importance in 

the future. We need more metals for 

the energy revolution, whether it be 

classic base metals such as copper or 

rare earth metals such as neodymium 

for the magnets of modern wind turbines, 

according to the IASS. The turnaround 

in mobility also requires increasing 

electrification of motorised 

road traffic, whether directly electric 

or with hydrogen/fuel cells. In contrast 

to fossil oil, we cannot abandon the 

use of metals, the institute states. 

The central challenge of the Paris 

Climate Agreement is to achieve greenhouse 

gas neutrality, but the challenges 

associated with this are often ignored in 

the public debate, said speakers at the 

conference, which was organised by 

IASS together with the Federation of 

German Scientists (VDW). An active 

phasing-out of oil production needs an 

all-encompassing framework. At the 

same time, the timeframe both for this 

and for the inevitably increasing demand 

for metals would have to be given 

much more attention. The strategic 

importance of copper, for example, is 

increasing. 

Resource extraction: What 

side effects can we live with? 

Although fracking has increased the 

global supply of oil, the actual shortage 

is not so obvious for a limited 

period. However, in the next decade 

at the latest, there will be a shortage 

of oil. The unsustainable use of fossil 

sources will inevitably come to an 

end, the conference stated, but also 

rose awareness that metals, too, must 

be produced sensibly. 

According to Melanie Müller of the 

German Institute for International and 

Security Affairs, to prevent this, the 

topic of mining must be »thought in 

a more transnational way« and »The 

mining of rare earth and metals must 

be monitored.« Ombud offices for mining 

activities would be a good idea. 

Peter Buchholz, head of the German 

Raw Materials Agency (DERA), recommends 

the establishment of cooperatives 

with licences that have to be 

bought to prevent human rights violations 

in mining. These could only be 

obtained by complying with certain 

minimum standards, such as the exclusion 

of child labour or demonstrable 

compliance with environmental protection 

measures. • 


Trade & Service 

thyssenkrupp invests in customer 

shopping experience 

Materials Services, the thyssenkrupp 

Group‘s materials distribution 

and service provider, is continuing 

to invest in its e-commerce activities. 

The company has purchased 

the data model for materials and 

anonymised product data from Mapudo 

GmbH, a former online marketplace 

for steel products. By 

doing so, thyssenkrupp Materials 

Services aims to optimise product 

data quality and offer customers an 

even better shopping experience 

on the company‘s online platforms. 

Industry-specific challenges 

»Relevant and accurate product 

data is an important decision-making 

aid for our customers and an 

indispensable prerequisite for the 

further digitalisation of the industry,« 

says Volker Hewing, as Head of 

IT Foundation responsible for master 

data management at thyssenkrupp 

Materials Services. 

The acquired data contains product 

descriptions such as quality characteristics 

and specifics, which allow the materials 

to be better identified and 

mapped in the online shops and portals 

of thyssenkrupp Materials Services. 

Customers benefit, for example, 

Materials Services is working on relevant and accurate product data. 

from an optimised search and selection 

of individual products. thyssenkrupp 

Materials Services has begun 

improving data quality as part of its 

digital transformation and will continue 

to drive this forward together 

with digital processes in the industry. 

»Mapudo has laid an important foundation 

in recent years,« says Hewing. 

»There are no standards for metallic 

materials, such as EAN codes, 

which are not specific to any particular 

trader or producer. Accordingly, 

materials must be identified 

by their properties. At Mapudo, we 

have created a multi-layered product 

typology that enables efficient 

and consistent comparison of 

materials and at the same time enrichment 

of product data,« says 

Niklas Friederichsen, co-founder 

and, together with Christian 

Sprinkmeyer, managing director of 

Mapudo GmbH. 

• 

Copyright: thyssenkrupp 

Salzgitter expands trading network 

Salzgitter Mannesmann Staalhandel B.V. takes over 

Statendam Steel Plates B.V., both in Oosterhout, 

the Netherlands. Salzgitter Mannesmann Staalhandel 

B.V., a Salzgitter AG group company, has taken 

over heavy plate specialist trading company Statendam 

Steel Plates B.V. effective December 31, 

2019. Both companies operate out of Oosterhout, 

the Netherlands. Statendam Steel Plates B.V. was 

founded in 2000 and was formerly 100% privately 

owned. It supplies construction, trading, boiler 

manufacturing, mechanical engineering, metalworking, 

offshore and shipbuilding companies in 

the Netherlands. The acquisition enables Salzgitter 

Mannesmann Staalhandel B.V. to extend its product 

portfolio and strengthen its market presence 

in the Netherlands. The company is part of the international 

trading organisation of Düsseldorfbased 

Salzgitter Mannesmann Handel GmbH that 

heads up the Trading Business Unit within the 

Salzgitter Group. 

• 



»Room for improvement« 

Interview with Marek Sacha, CEO of XOM Materials 

Three years ago, XOM Materials started changing the steel market with digital tools. How far 

has the digitisation of the industry progressed since then, and what are the company‘s latest plans 

and goals? Marek Sacha, CEO of XOM Materials GmbH, explains why 2020 could be the most 

important year in the history of the company. 

After two years of XOM Materials, 

what is your conclusion regarding 

the digitisation of the steel trade? 

Marek Sacha: It is still relatively difficult 

for the steel industry to go digital. At 

the same time, the pressure to tackle 

digitisation is increasing. After all, the 

European steel market has the greatest 

challenges. This will remain the same 

in 2020. For many suppliers, the price 

war is at the expense of profitability, 

so they must do something and digitisation 

is an important advantage. 

How digital is the German steel 

industry compared to its European 

neighbours? 

Sacha: When you see that most European 

market leaders have only just 

started digitising their sales processes, 

you realise there is huge room for improvement. 

Germany is well on its way 

towards digitisation and probably a bit 

ahead in comparison to most European 

countries. Industry 4.0 is a trending 

topic in Germany with several public 

and private initiatives starting in many 

sectors. It could help the German steel 

industry outmatch its European counterparts 

in the next years. 

In your experience, who is furthest 

ahead? 

Sacha: As far as I know, Austria has 

one of the highest rates of digitally 

processed orders in the steel sector. 

Smaller countries like Finland and 

Switzerland are catching up very 

quickly. Eastern Europe is rather open 

Marek Sacha: »Most European market leaders have only just started digitising their 

sales processes.« 

towards digitisation but lacks the means 

to force the change. Southern Europe 

is still in the early stages. This 

evaluation is based on our own experience 

in the different countries. There 

aren’t enough studies to draw a proper 

benchmark yet. 

What are the reasons for these differences? 

Sacha: In my experience, people in 

smaller European countries are generally 

more open to digitisation. Austrian 

companies, in particular, seem 

to have realised that eCommerce can 

also be a perfect additional service. 

In Germany, grave concerns about 

data protection still exist while other 

countries are generally more relaxed 

about this. At some point, even the 

slowest countries will have to catch 

up as there is no way around digitisation. 

Do you think providers have recognised 

this? 

Sacha: When I started at XOM Materials 

in 2018, only early movers wanted 

to talk seriously about digitisation. 

Today, everyone meets us with great 

openness. Most of the vendors we 

deal with now put digitisation at the 

top of their corporate strategy. In 

terms of production, they are already 

a little further along with Industry 4.0. 

And now the industry 4.0 wave is 

spilling over into the sales area? 

Sacha: Yes, I think so. At Amazon, the 

B2B sector is showing strong growth, 

which is certainly an important indicator. 

XOM is automating the sales area. 

With our tools, we can avoid inefficiencies 

and manual errors. As a result, 

products can also become cheaper 

Copyright: XOM Materials 



Copyright: Pixabay 

The way from steel production to digital trade solutions has become shorter. 

because the sales costs decrease. After 

all, eCommerce eliminates many manual 

steps. Digital data collected via 

B2B online trading can, in turn, make 

production more efficient because 

suppliers can produce more in line 

with demand. On the other hand, 

consumers can shop smarter. 

XOM Materials is currently transforming 

from a pure platform provider 

to a solution provider. How 

did this happen? 

Sacha: We realised that our digital 

trading platform, the XOM Marketplace, 

does not cover all aspects of materials 

trading. Therefore, we now focus on 

two additional aspects besides the 

Marketplace. One is a white-label 

eCommerce platform, i.e. complex 

eShop, as a separate digital sales channel 

for materials suppliers in their design. 

The second is an e-procurement 

solution that simplifies the purchasing 

process by bringing together all the 

necessary data. In both small and large 

companies, a lot of purchasing still 

runs on endless Excel spreadsheets 

with offers that are compared with 

each other. An eProcurement tool can 

prepare this data much better. For larger 

organisations that require a wide 

range of materials at different locations, 

it can also help to improve the 

overview significantly. 

So, the eProcurement solution 

could save a lot of time as well? 

Sacha: Yes, and it enables you to buy 

much better because offers can be 

compared a lot quicker compared to 

having Excel spreadsheets in front of 

you, which you have to decode first 

because the product names may differ. 

What advantages do steel and 

other materials distributors have 

when they rely on XOM‘s eCommerce 

solutions? 

Sacha: We can get dealers online 

quickly, and we can provide them with 

competent and industry-specific advice. 

For example, how do I best present 

products, what does the sales 

team need to know, how do I involve 

customers, how do I design a digital 

price strategy? These are all things we 

have learned ourselves in the last two 

years. We can now pass on this experience 

to sellers who are entering the 

world of e-commerce. We can make 

the development of an eShop much 

more efficient, and some dealers have 

already taken advantage of this offer. 

What convinced sellers who already 

run an XOM online store? 

Sacha: Well, having a steel-specific 

eShop is not the same as having a standard 

shop that sells any kind of products. 

In our industry, there are a lot of 

specific requirements like material certificates, 

cut-to-length, consideration of 

setup costs, personalised prices and the 

ability for buyers to define their own 

item numbers, etc. The sales process in 

the B2B sector is simply different from 

the B2C market. There is a whole range 

of additional industry-specific features. 

To develop all of this yourself would be 

very expensive, and you also need a 

large IT team to adapt a standard online 

store to the materials industry. We‘ve 

already done the work, and steel and 

other materials traders can benefit from 

it. So, all in all, we offer an online store 

solution that can be implemented more 

quickly and is cheaper. 

What are your goals for 2020? 

Sacha: That is easy to answer. We want 

to attract more customers to our eProcurement 

and eShop solutions and 

generate more sales through our Marketplace. 

We want to show even more 

steel, metal and plastics retailers how 

they can sell their products efficiently 

and digitally. Our solutions are also 

mutually beneficial because all the 

experience we gain with our online 

stores and eProcurement solution 

flows back into our Marketplace. 

Now XOM Materials enters its third 

year, is there still some start-up feeling 

left? 

Sacha: Yes, you can still sense it in the 

team. We develop everything in-house, 

and since our tools are in use and bring 

real added value to our customers, our 

employees are more motivated than 

ever, because it‘s all thanks to them. 

They can see that they have achieved 

something great and something meaningful, 

which is moving an entire industry 

forward. I am also proud of 

what we have achieved together. I 

want to continue like this. 2020 could 

be the most important year in the history 

of XOM Materials. 

• 



The scale of the combined companies 

will enable further development of optimised 

and specialised stocks. 

Copyright: Van Leeuwen Pipe and Tube Group 

Acquisition completed 

The Van Leeuwen Pipe and Tube Group has purchased 

Benteler Distribution 

The Van Leeuwen Pipe and Tube Group has completed the acquisition of Benteler Distribution 

(BD), a division of Benteler International AG. All necessary approvals from relevant regulatory 

authorities have been received for the closing of the transaction. »This acquisition is a historic step 

in Van Leeuwen’s 95-year history and underlines our ambition to remain a leading company in 

our industry. Both having the ambition to become the number one in our markets worldwide is 

what makes Van Leeuwen and Benteler Distribution such a perfect combination. Combining the 

companies means the coming together of strong expertise and experience built over many years«, 

Peter Rietberg, Chairman of the Management Board of Van Leeuwen, said to Steel Market 

European Edition. 

The coming year will be all about 

integrating Benteler into the 

Van Leeuwen network. The 

combined network of locations, 

warehouses and logistics forms an unrivalled 

distribution network with a 

strong emphasis on customer focus 

and added value. As a result, we are 

even closer to our customers and can 

serve them even better«, Joop Sassen, 

Member of the Management Board 

and CEO of Van Leeuwen, added. Van 

Leeuwen‘s strategy is to expand and 

improve its market position in various 

market segments and countries through 

acquisitions and autonomous growth. 

The addition of Benteler Distribution 

to the Van Leeuwen Pipe and Tube 

Group will provide Van Leeuwen with 

an extensive distribution network in 

Europe, creating opportunities to expand 

Van Leeuwen’s range of products, 

value-added services and treatments 

for its customers. The scale of 

the combined companies will enable 

further development of innovative 

solutions for customers, optimised 

and specialised stocks with proximity 

to the customers, and investments in 

IT-supported customer interfaces and 

effective distribution. 

»More than tubes« 

Peter Rietberg, Chairman of the Management 

Board of Van Leeuwen, said 

on the matter that »adding Benteler 

Distribution to the Van Leeuwen network 

is a perfect example of realising 

»more than tubes«. We are looking 



forward to welcoming our new colleagues 

to the Van Leeuwen family. 

Their expertise, market knowledge 

and dedication are of great value to 

us. Together we can further invest in 

the development of systems, solutions 

and infrastructure that will offer our 

customers an even broader range of 

pipe and tube products and value-added 

services.« 

The Van Leeuwen Pipe and Tube 

Group is an international distribution 

company specialised in steel pipes, and 

pipe and tube applications. The family-owned 

company, with its head 

office in Zwijndrecht, the Netherlands, 

was founded in 1924 and is active in 

virtually all industrial sectors. The 

Group, including the recently acquired 

company Benteler Distribution, has close 

to a hundred branches spread throughout 

Europe, the Middle East, Asia, Australia 

and North America. Van Leeuwen’s 

2,700 employees (including Benteler 

Distribution) have specialist 

knowledge of sourcing, processing, 

project management, logistics and 

stock planning, and work closely together 

with customers in its markets. 

Benteler Distribution (BD) is an international 

distribution company offering 

a full range of carbon and stainless 

steel tubes and customised services, 

operating in the mechanical engineering, 

automotive, energy, construction 

and ship-building industries. The company 

has 1,600 employees in 59 locations, 

including storage facilities, across 

24 countries. The addition of BD will 

significantly expand Van Leeuwen’s 

global presence, specifically in Germany, 

Switzerland, Scandinavia and Central 

Europe. 

Focus on automotive 

Ralf Göttel, CEO of the Benteler 

Group, stated that »It is part of our 

culture to consistently enhance our 

performance and improve our portfolio 

and business processes. This en- 

ables us to develop and produce tailored 

solutions for our customers and to 

be successful in an intensely competitive 

environment. The Van Leeuwen 

Pipe and Tube Group is an ideal partner 

for this transaction and perfectly 

equipped to take over Benteler Distribution’s 

business.« 

The divestment of the Benteler Distribution 

Division took place against 

the background of the company‘s increased 

focus on the automotive business. 

Benteler products can be found 

in almost every car worldwide. The 

Benteler portfolio ranges from tubes 

for airbags and axles, for example, as 

well as components and modules for 

chassis, body-in-white and engine and 

exhaust applications, to future modular 

technologies, such as electromobility 

system solutions. 

»Especially today, it is important to 

us to thank our colleagues in the Distribution 

division who have committed 

themselves and have successfully worked 

towards developing Benteler, making 

us what we are today: a family-run 

global company which, together with 

our partners, develops and produces 

tailored solutions for our customers,« 

concluded Ralf Göttel. • 

The integration of 

Benteler Distribution 

has already started. 


People 

Stefan Widing is new CEO of Sandvik 

Photo: Sandvik 

Stefan Widing 

Stefan Widing assumed the position of president and CEO for Sweden’s Sandvik on 1 February 

2020. Widing succeeded Björn Rosengren, who will leave Sandvik to lead ABB (see 

the previous issue). Since 2015, Widing has been the Executive Vice President of Assa Abloy 

and President of HID Global Corporation, a technology division within Assa Abloy. He 

holds an MSc in Applied Physics and Electrical Engineering as well as a BA in Business Administration. 

Sandvik’s board of directors notes that Widing’s competence in advanced 

technologies and experience from leading digital transformations will be an asset to the 

company. • 

Eva Vitell appointed new managing director of Hybrit 

Photo: Hybrit 

Eva Vitell 

Hybrit has appointed Eva Vitell as its 

new managing director. She took up 

her new role in the joint venture, 

which is owned by SSAB, LKAB and 

Vattenfall, earlier this month. According 

to her statement, she is looking 

forward »to working with highly 

qualified and motivated colleagues 

on the revolution in the steel indus- 

try and contributing to the transition 

of an industry that can do without 

fossil fuels«. Vitell is currently 

head of Customer and Market at 

Vattenfall Distribution. Previously, 

she headed Vattenfall‘s Swedish 

wind energy development and the 

Environment division of the group‘s 

Nordic operations. • 

Carsten Trentau is the new Head of Sales OEM at Kemper 

As the new Head of Sales, Carsten Trentau has recently assumed responsibility for the OEM (Original 

Equipment Manufacturer) division of the extraction technology specialist Kemper. In addition to the expansion 

of the project business, Trentau is focusing on the announcement of the new Kemper Automation 

product line, according to a press release. Before his employment at the company from Münsterland, 

the 55-year-old worked at Kjellberg in Finsterwalde. There he was already working with plasma technology 

in the OEM field. 

• 

Steeltec: Dr Florian Geiger appointed new CEO 

Photo: Steeltec 

Dr Florian Geiger 

At the beginning of the year, Dr Florian Geiger joined the bright steel producer Steeltec as 

the new CEO. With this appointment, the business economist takes over from Gerd 

Münch, who is leaving the Schmolz + Bickenbach Group. Until 2013, Geiger worked as a 

management consultant in the field of efficiency enhancement at international companies. 

He finally moved to the Schmolz + Bickenbach Group, where he was already responsible 

for strategic projects and mergers and acquisitions as Vice President Business Development. 

 

• 


People 

Martin Stillger succeeds CEO Klaus Keysberg 

as Spokesman of the Management Board 

Photo: thyssenkrupp Material Services 

Martin Stillger 

Martin Stillger (56) succeeds CEO Dr 

Klaus Keysberg as Spokesman of the 

Executive Board of thyssenkrupp 

Materials Services. Keysberg joined the 

Group executive board of thyssenkrupp 

AG in October last year and has assumed 

overall responsibility for the 

businesses of Steel Europe and Materials 

Services. Stillger has held various management 

positions at thyssenkrupp Materials 

Services since 2008 – most 

recently as CEO of thyssenkrupp Schulte 

and the Western Europe and Technical 

Services business units. Before joining 

thyssenkrupp, the mechanical engineering 

worked for Barmag AG for 17 years, 

five of which were spent as Chief Sales 

Officer and Chief Executive Officer. 

Detlef Schotten, currently CEO of the 

Eastern Europe and Asia-Pacific business 

unit, succeeded him as CEO of 

thyssenkrupp Schulte and the Western 

Europe business unit at the beginning 

of the year. 

• 

rff appoints co-managing director 

The company rff Rohr Flansch Fitting has hired Jörg Delveaux as a co-managing 

director. Besides Hartmut Böttche and Michael Allexi, he will oversee rff‘s activities 

and will initially be responsible for the purchasing and materials management 

divisions. According to the company, he will also be assigned the management 

of the warehouse and logistics division from 2021. Delveaux comes from a 

direct market environment and has in-depth market, product and management 

knowledge. 

• 

Jörg Delveaux 

Photo: rff/Thomas Schütze 

Changes in thyssenkrupp’s Supervisory Board 

Photo: IG Metall 

Jürgen Kerner 

Jürgen Kerner is to become Vice Chairman 

of the Supervisory Board of thyssenkrupp 

AG. He will succeed Markus 

Grolms, who has already resigned from 

the Supervisory Board. Kerner has been 

an executive member of the thyssenkrupp 

AG Executive Board since October 

2011 and Chief Treasurer of the German 

union IG Metall since November 2013. 

The trained information electronics 

technician is responsible for the union‘s 

finance, controlling, internal services 

and IT functions. He is also responsible 

for the coordination of sector policy. 

This includes the steel industry and the 

IG Metall team responsible for Siemens. 

As a member of the supervisory board, 

Kerner has already accompanied the 

restructuring of various large German 

corporations. 

• 

Advertiser‘s index 

BEPRO Blech und Profilstahl GmbH & Co.KG ..................................................................................2 

Heitmann Stahlhandel GmbH & Co. KG ...................................................................................1, 44 

Wilbers Lifting GmbH ......................................................................................................43 


People 

Karl Haider new CCO of Tata Steel in Europe 

Karl Haider 

In November, Karl Haider took up the role of Chief Commercial Officer 

for Tata Steel in Europe, replacing Henrik Adam, who became CEO of Tata 

Steel in Europe in June this year. Karl Haider joined Tata Steel in Europe 

as director of downstream operations in 2011. He began his career in the 

steel industry as an apprentice at voestalpine in 1981. He went on to study 

technical chemistry and business economics and holds a PhD in Natural 

Science. From 1997, he filled several commercial roles at Dutch chemical 

company DSM from 2001 until 2006. He then returned to voestalpine, 

first as a project manager and then as a member of the executive board 

of the High-Performance Metals division of voestalpine AG. • 

Dmitry Sotnikov appointed NLMK Group vice president 

for Investment Projects 

NLMK Group has announced the appointment of 

Dmitry Sotnikov as NLMK Group Vice President for 

Investment Projects. Before joining NLMK Group, 

Dmitry Sotnikov headed a development company 

that executed the construction of a business park 

in Moscow, a residential complex in Yekaterinburg 

and a business centre in Perm, among other largescale 

projects. Before 2011 and for almost a decade, 

Dmitry held various investment and operational 

management positions at Evraz. He created a project 

management system at Evraz and was directly 

involved in the execution of the Company’s largest 

steelmaking and mining projects. Konstantin Lagutin, 

NLMK Group’s previous VP for Investment Projects, 

has decided to step down from the position. 

He will stay on with the company until the end of 

the year as an advisor to NLMK Group President 

and CEO. He led the implementation and development 

of the project management system, and the 

execution of several NLMK strategic projects, including 

the construction of Stoilensky pelletising 

plant. 

• 

German Iron and Steel Institute: Lüngen new 

executive member of the managing board 

At Germany’s Steel Institute VDEh, 

Dr Hans Bodo Lüngen has assumed 

the position of executive member of 

the managing board. Lüngen for 

many years has been heading the 

technical affairs at the techno-scientific 

organisation of the German 

steel industry that is headquartered 

in Düsseldorf. He joined the institute 

in 1985. After studying metallurgy 

and writing a PhD thesis on sintering 

processes, he has held various leading 

positions at the institute over 

the years. Among other things, he 

has co-organised the European Steel 

Technologies and Application Days 

(ESTAD), a technical forum hosted 

as part of the Düsseldorf Metec 

trade fair. Lüngen is also chairman 

of the Technical Group Steel 1 

(TGS1) of the Research Fund for Coal 

and Steel (RFCS). He is succeeding 

Peter Dahlmann, who retired in 

November. • 

Dr Hans Bodo Lüngen 


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information about new investments, companies and technologies in the field of iron and steel making 

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Eine Marke der Maenken Kommunikation GmbH 

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03 | 2020 41

Preview & Imprint 

In the next issue 

Preview 2-2020 

Foto: Hollandia Infra 

The 3D model of the 

Thomassen Tunnel bridge 

at its final location 

Innovative weld-edge preparation for a major steel arched bridge 

With a staff of over 350, the Hollandia B.V. group is a leading Dutch steel construction specialist for infrastructure 

projects. One of its latest projects – the 296-metre-long Thomassentunnel Bridge in the Port of Rotterdam – is set to 

become the biggest bridge in the group‘s long history. It will incorporate the staggering sum of 4,200 tons of heavy 

plate. Construction, engineering, production, assembly and installation at the bridge‘s final destination – as well as 

project management – are all in the hands of one of the group‘s subsidiaries, Hollandia Infra B.V. In cooperation with 

Dillinger‘s Heavy Fabrication Division, this Dutch company developed a new design for weld-edge preparation for the 

steel construction. Thanks to this innovation, Dillinger was able to deliver 188 heavy plates measuring up to 120 mm 

thick and 17 metres long – ready for installation and just in time. 

Challenges for the steel tube and flange industry 

Frank Harms, managing director of the German steel tubes federation Wirtschaftsvereinigung Stahlrohre and 

flanges federation Fachvereinigung Stahlflanschen, comments ... 

Imprint 

»Steel Market« is published by 

Maenken Kommunikation GmbH, 

Cologne/Germany. 

Publishing House: 

(responsible for editorial, advertising, 

production and circulation) 

Maenken Kommunikation GmbH 

Von-der-Wettern-Straße 25 

51149 Cologne/Germany 

www.maenken.com 

Phone +49 (0) 22 03/35 84-0 

Fax +49 (0) 22 03/35 84-185 

Frequency: 2 x per year 

Circulation: 6,100 copies 

Unit price: 

See cover, plus forwarding expenses 

Publisher: 

Dr. Wieland Mänken 

Phone +49 (0) 22 03/35 84-0 

Publication Manager: 

Wolfgang Locker 

Editorial Team: 

Philipp Isenbart (Chief Editor) 

Phone +49 (0) 22 03 / 35 84-121 

Frank Wöbbeking (Editor) 

Christian Köhl (Editor) 

Niklas Reiprich (Editor) 

Advertising Team: 

Claudia Cremer 

Phone +49 (0) 22 03 / 35 84-166 

E-Mail: claudia.cremer@maenken.com 

Susanne Kessler 

Phone +49 (0) 22 03 / 35 84-116 

E-Mail: susanne.kessler@maenken.com 

Layout: 

Anja van Elst 

www.zwoelfender-design.de 

Print Shop: 

D+L Printpartner GmbH 

Schlavenhorst 10 

46395 Bocholt 


since 1969 

European 

Steel Distributor 

The specialist with its own warehouses 

and world-wide trading 

Bepro Blech und Profilstahl GmbH & Co. KG 

Consolstraße 11, D-45889 Gelsenkirchen 

Tel. +49(0)209/98251-10, Fax +49(0)209/98251-31 

info@bepro.de, www.bepro.de

Luxemburgerstraße 61 

D-48455 Bad Bentheim-Gildehaus 

Tel.: +49 (0) 5924 255390 

E-Mail: info@wilberslifting.de 

Internet: www.wilberslifting.de

Steel Market 01 / 2020

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