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2021: growth forecasts for the Marcegaglia Group

Revenues and shipments of finished goods experiencing strong growth, with expectations of a recovery from 2020’s margins: this is the image of the Marcegaglia Group presented by the Chairman and CEO Antonio Marcegaglia in an interview released to Il Sole 24 Ore newspaper.


Despite the lockdown and uncertainty that marked the first part of the year, 2020 “was satisfying: we closed with a 2.7% increase in shipments, which is significant if we consider that European industry recorded a slowdown of 12% during the same period”, stated Antonio Marcegaglia.


Shipments of finished goods touched 5.398 million tons, and total revenues reached 4.772 million euros. Margins were fair, especially considering the 30 million in warehouse depreciations that the company will recover this year.


“We are expecting a decisive recovery of margins compared to 2020, which closed with 243.3 million euros net, as well as on the previous year, which closed higher”, continued the Chairman, Mr. Marcegaglia.

Revenues have grown by 26.4%, whilst the shipments of finished goods have reached 7.5% (more than 1.5 million tons).


The rising trend in steel prices has picked up again in recent months and the company is benefiting from this. “We have believed in the bull market trend since August and pursued it. Maintaining regular flows is not easy but we are managing it for now thanks to the international relationships we have been able to develop over time with our suppliers. I’m confident that this trend will last, at least for the rest of the year”, states Antonio Marcegaglia.


In terms of its operations, in 2020 the group confirmed its investments in Ravenna (with the launch of the new cold rolling mill) and Gazoldo degli Ippoliti (where 4 new tube mills will be set up after having been revamped in Germany. This will increase the group’s tube production capacity by around 300,000 tons).


The company has also obtained a new guaranteed line of credit from Sace with two tranches of 300 and 75 million euros, respectively. “These resources have acted as a backup and we haven’t needed to use them. Now, with the increase in prices and stock, we might need them”.


With the cash and lines of credit so far unused, Marcegaglia is counting on taking advantage of ThyssenKrupp's bid to sell Ast.

“We are interested as it’s a project with solid industrial foundations that can be integrated upstream with our annual consumption of 500,000 tons of stainless steel. Furthermore, given that 20% of our volumes concern special steels, part of the production capacity could be used for carbon steel.”

The company is not contemplating collaborations with any other industrial entities. This would be a solo operation or one that would potentially take place alongside an institutional partner.

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