In the context of its new strategic direction, Danieli Group has announced a significant investment plan of 572 million euros for ABS. This plan aims to establish a new production line featuring advanced digital technologies to monitor energy use with a focus on renewable sources. CEO Giacomo Mareschi Danieli explains the motives underlying the Group’s newfound strategy.
Giacomo Mareschi Danieli: Danieli Group will focus on enhancing efficiency of existing plants
In the face of challenging market conditions, Danieli Group is recalibrating its business model in favor of efficiency and sustainability. The company has achieved significant financial results for the fiscal year 2023/2024, reporting revenues of nearly 4.5 billion euros and a net profit of approximately 241 million euros. However, the results also reveal a bifurcation within the company business segments: while the plant construction division experienced a robust 17% increase in revenues, the steel production segment through ABS saw a 13% decline. This disparity reflects the shifting dynamics in the global steel industry, which is now entering a contraction phase following two years of substantial growth. The rising energy costs that affected Italy in particular – in the country such expenses account for nearly 30% of transformation cost – are further compressing margins and dampening demand. In response to these challenges, Danieli Group is redefining its operational focus. CEO Giacomo Mareschi Danieli emphasized that the company will move away from developing large-scale plants aimed at sheer production capacity. The company’s strategy will instead pivot toward enhancing the efficiency of existing plants, enabling Danieli Group to become more competitive and sustainable in a rapidly changing market landscape.
Giacomo Mareschi Danieli: a 572 million euros investment plan for ABS
The latest investment plan for ABS, totaling 572 million euros, mainly aimed at the creation of a new production line, is the demonstration of Danieli Group’s newfound focus on efficiency and sustainability. This ambitious project includes the installation of a state-of-the-art digital and closed furnace, designed to monitor energy consumption while operating entirely on renewable energy sources. An initiative that hence reflects the company’s unwavering commitment to sustainability and efficient resource utilization. In addition to this production line investment, Danieli Group wants to reduce the environmental impact of its logistics operations, targeting an increase in rail transport usage for its products from the current 16% to 45% by 2030. As for the future, the Buttrio based company anticipates maintaining a balanced budget for the upcoming year, but it also admits that there is a financial variability closely tied to the outcomes of the Piombino plant project, valued at 1,5 billion euros. The initiative is expected to significantly influence Danieli Group’s financial trajectory, with operations projected to commence by June 2025. By emphasizing innovation while simultaneously committing to sustainable practices, the company led by Giacomo Mareschi Danieli is positioning itself for success in an increasingly competitive and environmentally-conscious market. As the steel industry continues to grapple with considerable challenges, the Danieli Group’s strategic focus on operational efficiency and sustainability will be crucial for its enduring success as well as for maintaining its leadership in the sector.
