The Feralpi Group, one of the leading steel producers in Europe, has presented its 2023 financial results, highlighting a year of significant challenges and important strategic investments. Despite a difficult European economic context characterized by rising raw material costs and market instability, the group managed to maintain stable production volumes and continue its commitment to innovation and sustainability. In an exclusive interview, Giuseppe Pasini, President of the Feralpi Group, discussed the results of the past year, future prospects, and the importance of investments in the green economy.
In the interview with Giuseppe Pasini, significant details about the Feralpi Group’s 2023 financial results emerged. Pasini confirmed that production performed very well, allowing the group to maintain a strong position in European markets. “Production went well; we managed to maintain our positioning within Europe across all markets, thanks in part to our continuous operations,” Pasini stated. However, revenues were negatively impacted by rising raw material costs. “We were unable to increase revenues as much as we hoped, resulting in a significant reduction of about 30% in turnover, bringing us to 1.7 billion euros, compared to the 8.5 billion euros net result in 2019, which is obviously unsatisfactory,” he added.
Looking to the future, Pasini explained that 2024 is likely to be similar to 2023. He cited the lack of significant cuts in interest rates and the financial instability caused by ongoing conflicts as factors contributing to the economic slowdown, particularly in the real estate sector, where the Feralpi Group is very active.
Despite the difficulties, the group continues with its investments, which are expected to be completed by the end of this year or, at the latest, by spring 2025. “We have stayed the course and are moving forward,” Pasini asserted. During the press conference, it was highlighted that, for the first time, foreign employees outnumber Italian ones. “We have surpassed 1,900 employees, which demonstrates that we are now a small multinational,” Pasini said.
Pasini expressed satisfaction with the group’s strategic plan, despite the current economic and market weaknesses. “Not every year can be like those we’ve gone through, but we are quite accustomed to economic cycles, so we are not overly concerned.”
A crucial theme that emerged during the interview is the green economy. Pasini criticized the ideological approach of Europe towards energy issues. “Europe has focused too much on ideological aspects and too little on pragmatic ones, without adequately engaging with the economic and business system,” he stated. With the new European Commission, which is dominated by green representatives, Pasini hopes for a more reasonable and less ideological approach. “With ideology, you get nowhere,” he added.
Finally, Pasini expressed concern about the future competitiveness of the group, considering the costs to be borne. “The question I ask myself as an entrepreneur and as a father is whether we will still be as competitive in ten years, given the costs we have to sustain,” he concluded.
Details from the 2023 Financial Report
During the presentation, it was emphasized that in 2023, 169 million euros were invested in improving and electrifying production processes in Italy and Germany. Steel production reached 2.4 million tons, with a total net result of 18.9 million euros and a total net equity of 996 million euros.
Despite the slowdown in the European steel market, the group continued its strategic investments, particularly for the construction of a new rolling mill at the Feralpi Stahl plant in Riesa, Germany, where rolls weighing up to 8 tons will be produced for the construction market through an innovative and zero direct emissions process.
In Italy, a new spooler plant will be operational by 2024 at the Feralpi Siderurgica facility, which will expand the range of products offered to customers. Additionally, a modern Garret line for producing rolls with diameters ranging from 19 mm to 32 mm will be activated in Lecco, in Caleotto.
Feralpi has also achieved significant emission reduction targets. Last year, Scope 1 and Scope 2 emissions were reduced by 24%. Furthermore, the goals for CO2 emission reductions by 2030 have been approved by the international SBTi.
Sustainability remains a priority for the group, with the introduction of an integrated report that combines financial performance reporting with environmental, social, and governance (ESG) information.
In conclusion, Giuseppe Pasini commented: “The steel market in Europe is going through a complex period, recording a decline of about 10 million tons between 2022 and 2023 (-7.4% year-on-year). In this context, Feralpi firmly maintains its market share despite the pressures on the electro-steel sector from rising energy costs and scrap shortages. The Group confirms its vision and execution capability with the commitment to offer the market an increasingly decarbonized product.”
The Feralpi Group, with a turnover of 1.7 billion euros in 2023 and over 1,900 direct employees, continues to focus on innovation, sustainability, and quality to tackle future challenges.
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