Italian Danieli plans to expand its metallurgical division

In the business year 2022/2023 (July/June), the company produced around 1.2 million tonnes of steel. This is 10% less production than in the previous year. However, Danieli plans to invest EUR 650 million to increase its capacity to 2.3 million tonnes per year.

ABS commissioned new lines for wire rod and grinding ball production in 2022. The company also acquired Rott-Ferr, a scrap metal supplier with a turnover of around 100 thousand tonnes per year. New investments will be directed towards the acquisition of other scrap collection companies, the construction of electric arc furnaces and rolling lines.

As Danieli noted, the global steel market is in decline and this decline is expected to continue in the first quarter of 2024. India, Southeast Asian countries and the Middle East look better than others in this regard.

For the financial year 2023/2024, the company forecasts revenues at about the same level as in the previous financial year. Danieli is receiving plenty of orders for electric arc furnaces and related equipment as well as for digitalisation and automation. As Danieli notes, Western steel companies are investing heavily in reducing carbon emissions.