global coils. 2005-2009 offtake agreement with teeside (corus group) for the supply of 850 k t/year...

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Page 1: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli
Page 2: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

MARCEGAGLIA IS THE ITALIAN INDUSTRIAL GROUP LEADING THE EUROPEAN AND WORLDWIDE STEEL MARKET. A UNIQUE COMBINATION OF THE DYNAMIC ITALIAN FAMILY BUSINESS MODEL WITH THE GREAT OPERATING CAPACITY AND PRESENCE IN THE INTERNATIONAL MARKETS, TYPICAL OF THE LARGE CORPORATIONS.

GLOBAL PLAYER

IN STEEL2

Page 3: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

SHAPING STEEL

5.6 million tons processed yearly

5 billion euros sales

6,500 employees

24 steel plants

60 sales offices

1st independent player in steel processing sector in the world

1st producer of stainless steel welded tubes in the world

1st producer of carbon steel welded tubes in Europe

1st service center in Italy

3

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CORPORATE CULTURE

Independence, dynamism, resilience, competence,versatility, reactivity: in almost 60 years of history, these distinctive values made Marcegaglia the privileged partner in the steel processing industry.

The company culture is based on people centricity and sharing of the same key values which are shaping Marcegaglia unique business model.

100% STEEL VALUES

PEOPLE

STRONG COMPANY VALUES

+CUSTOMER CARE

WIDE RANGE OF PRODUCT

HIGH MARKET DIVERSIFICATION

PRODUCTION FLEXIBILITY

QUALITY AND SERVICES

MARCEGAGLIA BUSINESS MODEL

4

Page 5: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

1 PLANT ITALY

2 PLANTS ITALY

Mariven

MARCEGAGLIA TURKEY

MARCEGAGLIA RU

STAINLESS STEEL

COLD-DRAWNBARS

HEADQUARTERS AND PLANTSGAZOLDO DEGLI IPPOLITI

PLANTS & SALES OFFICES

3 WAREHOUSE ITALY

FLATS PRODUCTS

5 PLANTS ITALY4 PLANTS ITALY

WELDED TUBES

HEADQUARTERS AND PLANTGAZOLDO DEGLI IPPOLITI

MARCEGAGLIA CHINA

MARCEGAGLIA DO BRASIL

MARCEGAGLIA POLAND

PLANTS & SALES OFFICES

MARCEGAGLIA UK MARCEGAGLIA USA

OUTSOURCING INOX

SALES OFFICES

MARCEGAGLIADEUTSCHLAND

MARCEGAGLIA FRANCE

MARCEGAGLIA IBERICA

MARCEGAGLIA INDIA

MARCEGAGLIA NORTH EUROPE

OTHER PARTICIPATIONS

AM INVESTCO

Fontana

SIM

FIN. MAR. MARFIN Staff Corporate

Altre partecip.

Altre partecip.

Altre partecip.

Altre partecip.

BUILDING

HOME PRODUCTS

ENERGY

Oskar Imat

CO.GE.AM

ENGINEERING

Elet.Ca Made HSE

Gaia Turismo

HOSPITALITY ACT. & REAL ESTATEAlbarella

Pugnochiuso

Palazzo Agricoltura

Gabetti Property S.

OTHER PARTICIPATIONS

EuroEnergy

Metal Interconnector

Marcegaglia Buildtech

M. Gulf Qatar

M. Romania

San Michele

Dalmine LS

M. Perù

HEADQUARTERSGAZOLDO DEGLI

IPPOLITI

HEAVY PLATES

San Giorgio di NogaroPLANT ITALY

THE STRUCTURE OF THE GROUP

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Page 6: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

Core business activities, controlled by Marcegaglia Steel (holding company, which represents 95% of total activities), are organized through three different operating companies: Marcegaglia Carbon Steel with the flat products and welded tubes divisions, Marcegaglia Specialties with the stainless products and cold drawn bars divisions, Marcegaglia Plates for the heavy plates production. Marcegaglia Investments is the holding for the diversified activities (5% of total activities).

95%

E T (M/€) P (KT/y)

1,100 250 50

E T (M/€) P (KT/y)

100 200 400

E T (M/€) P (KT/y)

1,000

1,300 TOTAL 650 TOTAL

1.150

STAINLESSSTEEL

PRODUCTS

150

COLD-DRAWN

BARS

450

STAINLESSSTEEL

PRODUCTS

200

COLD-DRAWN

BARS

EMPLOYEES TURNOVER (M/€) PRODUCTION (KT/y)

4,300

3,250 TOTAL 4,500 TOTAL

2,100

FLATS PRODUCTS

1,150

WELDED TUBES

3,000

FLATS PRODUCTS

1,500

WELDED TUBES

6

STEEL CORE

Page 7: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

1959 MARCEGAGLIA, IN ALMOST SIXTY YEARS OF HISTORY, HAS BEEN CONSTANLY GROWING FROM A SMALL LOCAL ENTITY TO ONE OF THE LARGEST ITALIAN CORPORATION, ABLE TO DEVELOP INTERNATIONALLY ITS “MADE IN ITALY” BUSINESS MODEL. NEVERTHLESS THE GROUP REMAINS STRONGLY ROOTED TO ITS ITALIAN ORIGIN.

MARCEGAGLIA LEADERSHIP HAS BEEN BUILT THROUGH A LONG, SOLID AND CONSISTENT GROWTH PATH. MARCEGAGLIA IS THE LARGEST INDEPENDENT STEEL PROCESSOR WORLDWIDE.

TIMELINE7

Page 8: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

8 Marcegaglia

1959 In Gazoldo degli Ippoliti (Man-tua, Northern Italy), Steno Marcegaglia establishes a small factory, Marcega-glia-Caraffini, specialized in the manu-facturing of roller shutter and open profi-les. The company is taken over a few time later and re-named Metallurgica Manto-vana.

1963 I.P.A.S. is founded for the manu-facturing of drawn products from flat and tubular steels.

1959 - 1963Start up. The pioneering phase

1964 - 1982 Strong internal growth

1970 The unit in Gazoldo degli Ippoli-ti quickly develops its activities adding cold re-rolling process and precision tu-bes manufacturing.

1982 Steno Marcegaglia founds in asso-ciation with three business partners Oto Mills - leader in high-precision tubes mills - and successively establishes a new sta-te-of-the-art unit in Casalmaggiore (Cre-mona).

1982 - 1988Organic growth is accompanied by an M&A campaign in Italy

1983 Acquisition of Lombarda Tubi in Lomagna (Lecco), Saom in Boltiere (Bergamo), Trisider in Tezze sul Brenta (Vicenza).

1985 Marcegaglia adds to its structure three companies of Maraldi Group with the plants in Ravenna, Forlimpopoli (Forlì) and Cervignano del Friuli (Udine).

1987 Acquisition of Profilnastro in Dusino San Michele (Asti).

TIMELINE

Gazoldo degli Ippoliti HQ Contino, ITA Casalmaggiore, ITA Lomagna, ITA Boltiere, ITA Tezze sul Brenta, ITA Ravenna, ITA Forlì, ITA

8

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1989-1991 Start up of the first tube mill in the Forlì plant. Start up of the first line for stainless steels processing and pickling in Gazoldo degli Ippoliti unit. Acquisition of the San Giorgio di Nogaro plant (Udine).

Start up of new distribution offices (today Marcegaglia UK); foundation of Marcegaglia Deutschland and acquisition of Bishop near Philadelphia (USA).

90’s Start up of diversified activities: acquisitions of Albarella, Ponteggi Dalmine, CCT and other activities in the real estate and financial sectors.

1988 - 1999Expansion of the steel activities (stainless steels and heavy plates).Launch of diversification (acquisitions) and internationalization

1999 - 2007Strong development in carbon steel flats and stainless steels

1999 The unit in Ravenna is at the core of a huge investment program (“Raven-na 2000”) for coils processing.

2000 Inauguration in Garuva (Brazil) of a huge plant specialized in refrigeration tubes and household appliances com-ponents. Development of stainless steel tubes manufacturing in the Pittsburgh unit (Marcegaglia USA).

2000-2005 Growth of Italian activities and sales network worldwide.

2000 Joint venture agreement with Brema (Arcelor Group) for the supply of 500 K t/year of hot-rolled coils.

2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs.

2000 - 2008Reliable and strategic supply of raw materials

Gazoldo degli Ippoliti HQ Contino, ITA Casalmaggiore, ITA Lomagna, ITA Boltiere, ITA Tezze sul Brenta, ITA Ravenna, ITA Forlì, ITA Dusino San Michele, ITA San Giorgio di Nogaro, ITA Osteria Grande, ITA Dudley, UK Lainate, ITA Albignasego, ITA Corsico, ITA Garuva, Brazil Munhall, USA Praszka, Poland Kluczbork, Poland Yangzhou, China Vladimir, Russia Montechiarugolo, ITA

TIMELINE9

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2007-2008 onsolidation of the main Ital-ian manufacturing units (Ravenna, Casal-maggiore, Gazoldo degli Ippoliti – 1,5 billion euros invested in 6 years). Inau-guration of new units in the European (Poland) and extra-Europe (China, Russia) markets. Doubling of Brazilian plant.

2010-2011 Opening of the new Mar-cegaglia Poland manufacturing unit in Kluczbork dedicated to carbon steel tubes production. Inauguration of Marcegaglia China in Yangzhou, the biggest Italian invest-ment in China. Growth in diversified sec-tors (tourism, thanks to the acquisition of Forte Village and Castelmonastero, and renewable energies).

2007 - 2013Further industrialization program in Italy and abroad (core business)

2013 - 2014Diversified activities: start up of the divestment program

2013-2014 Marcegaglia decides to fo-cus on and to consolidate its own core business and to gradually divest the di-versified activities. In 2013 Oto Mills and Forte Village are sold.

Marcegaglia launches a corporate reorganization project oriented to guarantee a further level of growth as a catalyst in its core business.

2015 Group reorganization project

Gazoldo degli Ippoliti HQ Contino, ITA Casalmaggiore, ITA Lomagna, ITA Boltiere, ITA Tezze sul Brenta, ITA Ravenna, ITA Forlì, ITA Dusino San Michele, ITA San Giorgio di Nogaro, ITA Osteria Grande, ITA Dudley, UK Lainate, ITA Albignasego, ITA Corsico, ITA Garuva, Brazil Munhall, USA Praszka, Poland Kluczbork, Poland Yangzhou, China Vladimir, Russia Montechiarugolo, ITA

TIMELINE10

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STEEL IN THE WORLD

HARBOURS AND RAIL TERMINALSRavenna, ITASan Giorgio di Nogaro, ITA

OUR MAIN LOGISTIC HUBSKolding, Gdansk, Newport, Antwerpen, Hagen, Siegen, Karlsruhe, Lyon, Constanta, Gemlik, Tarragona

Gazoldo degli Ippoliti HQAlbignasego, ITABoltiere, ITACasalmaggiore, ITACorsico, ITADusino San Michele, ITALainate, ITALomagna, ITAOsteria Grande, ITARavenna, ITATezze sul Brenta, ITADudley, UKGaruva, BrazilKluczbork, PolandPraszka, PolandYangzhou, China

Gazoldo degli Ippoliti HQ Contino, ITAForlì, ITAMontechiarugolo, ITAIstanbul, Turkey Munhall, USAVladimir, Russia

SALES OFFICESBarcelona, Spain Cluj, RomaniaDüsseldorf, GermanyLuxembourg, LuxembourgLyon, FrancePune, India

Gazoldo degli IppolitiSan Giorgio di Nogaro, ITA

Boltiere

Contino

Gazoldo degli Ippoliti HQ

Tezze sul Brenta

San Giorgio di Nogaro

Albignasego

Osteria Grande

Ravenna

Lomagna

Dusino San Michele

Lainate

Corsico

Montechiarugolo

Casalmaggiore

Forlì

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Page 12: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

IRON MAKING

STEEL MAKING

CASTING

HOT ROLLING

GALVANISED,PICKLED,COLD ROLLEDAND PRE-PAINTED COILS

STAINLESS STEEL HR/CRCOILS

TUBES, SHEETS

TUBES, STRIPS,STAINLESS SHEETS,DRAWN BARS

ALL PRODUCTS

ALL PRODUCTS

PICKLING COLD ROLLINGGALVANIZINGPRE-PAINTING

PICKLING COLD ROLLING

TUBE FORMING, SLITTINGAND CUTTING TO LENGTH

TUBE FORMING, SLITTINGAND CUTTING TO LENGTH,DRAWING

FINISHINGDISTRIBUTION

FINISHINGDISTRIBUTION

Via either blast furnace,using iron mineraland carbon, or electric furnace, using re-melted scrap steel.

STEEL PRODUCTION

ARE CHEMICALLY AND/ORMECHANICALLY PROCESSEDTO MAKE THEM SUITABLEFOR SPECIFIC INDUSTRIALPURPOSES

1st TRANSFORMATION

ADVANCED PROCESSINGTO CUSTOMISE STEELPRODUCTS ON CLIENTSSPECIFIC REQUESTS

2nd TRANSFORMATION

DIRECT SELLINGAND/OR RETAILINGTO INDUSTRIAL CLIENTSOR FURTHER PROCESSINGUNDER REQUEST

DISTRIBUTION

OUTPUTACTIVITIES

STEEL UNIQUE

Marcegaglia is covering the wholedownstream and distribution steel value chain, this featuring a unique strategic position. Marcegaglia is the first steel processor with a range of products that varies from carbon to stainless, from long to flats, from commodity to specialty.

Carbon steel productsStainless steel products

COILS

BARS

HEAVYPLATES

12

Page 13: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

15,000

STEEL AT YOUR SERVICE

Building, Carpentry

Automotive

Food and Dairy

Trading

Household appliances

Mechanical engineering

Agriculture

Chemical, Petrochemical

Plant engineering

HVAC, Plumbing

Furniture, Houseware

Energy, Environment

Other

Sport, Leisure

19%

13%

9%

9%

8%

8%

6%

6%

6%

6%

4%

3%

2%

1%

APPLICAZIONI

Counting on 72 international manufacturing standards for stainless and carbon steels and 136 internal specifications, also tailor-made to customers, Marcegaglia has a widespread presence in several market segments: from distribution to mechanical engineering, machinery, building&construction, automotive, appliances, food, etc.

Over 15,000 customers in Europe and worldwideconfirm the group wide market capillarity.

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Page 14: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

CLOSE ATTENTION TO EXCELLENCE NOTONLY IN TERMS OF PRODUCT QUALITY,BUT ALSO OF PROCESS AND SERVICE

Marcegaglia R&D team, thanks to the deep knowledge of raw materials and manufacturing process, customizes products on customers’ most demanding requirements.

The R&D division’s commitment is to continuously expand the production chain and to develop new process and finishings. The support provided to some technologically advanced industries is a genuine partnership with customers aimed to develop new products and solutions. Marcegaglia is often considered the benchmark for international certification authorities and the pioneer to new and higher quality standards.

QUALITY STEEL

14

Page 15: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

60 SPECIAL CONSIDERATION TO RAW MATERIAL

The special consideration given on the source and origin of raw materials is one of the group’s strengths in the production process management: with more than 60 long-terms partnership agre-ements with the major steel makers worldwide, Marcegaglia can count on a constant and reliable supply of top-quality raw materials and different steel grades in order to offer to its customers a continuous tailor-made service.clienti un servizio su misura in ogni momento.

STEEL INDEPENDENT

15

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STEEL TIMELESS

4.0 INDUSTRY 4.0, FOR REAL

The design and implementation of integrated digital and automation solutions, as result of a strong synergy between IT and R&D engineering departments, guarantee the best performances in terms of production and service. Special attention has been dedicated to the improvement of information flows, specially on production timing and shared in real time with customers.

The state-of-the-art technology optimizes the goods flow and becomes a further key feature to increase efficiency, safety of workers and enhancement of the value chain.

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Page 17: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

BELIEVING IN STEEL

EVERY DAY, MARCEGAGLIA EXPRESSES A DISTINCTIVE EXPERTISE THAT, BESIDES THE UNIQUE COMPETENCE AND PRODUCTIVE KNOW-HOW, IS TRANSLATED INTO A CON-STANT ATTENTION TO SUSTAINABILITY

The attention to the quality of the production process is also expressed in the commitment to the safety of workers, through the constant innovation of the production system.

Costs control, energy saving and environmentalcare are expressed through the use of alternative energies, production energy recovery and reduction of waste, becoming for Marcegaglia a deep rooted value which makes the group a model of sustainable company.

-CO2

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STEEL MOVING THE WORLD

24

A CAPILLARY PRESENCE AND SOPHISTICATED LOGISTIC NET-WORK TO GET CLOSERTO CUSTOMERS ALL OVEREUROPE AND IN THE WORLD

Marcegaglia owns 24 plants, 11 hubs located in the most strategic European production districts, 2 rail terminals and 2 port docks by the Mediterranean Sea (Ravennaand San Giorgio di Nogaro) in order to ensure maximum timeli-ness, flexibility and on time in de-livering the products.

18

Page 19: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

STEEL IS HUMAN

6,500

Marcegaglia has participated into several support initiatives to promote, through the direct participation of its production units, the well-being of the community. The group has mainly focused its commitment to sustain the territory and local communities, in Italy and abroad, on suffering and social disadvantages.

MARCEGAGLIA’S VISION IS BASED ON VALORIZATION OF ITS HUMAN RESOURC-ES THAT SHARE AND EXPAND THE GROUP VALUES

The 6,500 employees, who constitute Marce-gaglia’s human capital, represent the core asset of the group.

Marcegaglia continuous commitment to invest on the safety and growth of human resources results into a deep-rooted bond with the company, cre-ating a passionate attachment and a low turnoverrate.

Marcegaglia constantly promotes and values the know-how, skills, competences, experiences and personal qualities of its employees.

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Page 20: GLOBAL coils. 2005-2009 Offtake agreement with Teeside (Corus Group) for the supply of 850 K t/year of slabs. 2000 - 2008 Reliable and strategic supply of raw materials Gazoldo degli

Building

Marcegaglia Buildtech

INSULATED PANELS

GUARDRAIL

CONSTRUCTION EQUIPMENT

Home products

Oskar Imat

METAL HANDLES

CONDENSERS

EVAPORATORS

Energy

EuroEnergy CO.GE.AM

POWER PRODUCTION

FROM RENEWABLE

SOURCES

Engineering

Elet.CaMade HSE

COMPOSITE MATERIALS

ENVIROMENTAL,

SAFETY, QUALITY

Hospitality Act. & RE

Albarella Gabetti Property Solutions

HOSPITALITY

ACTIVITIES AND

REAL ESTATE

Marcegaglia Investments develops all thediversified activities in the building&con-struction sector, home products - with a dedicated range for household appliances,refrigeration and DIY - electro-mechanichaland composite materials products.

Moreover, Marcegaglia Investments can count on a presence in the energy sector with the production of energy from renew-able resources, in the tourism and in the real estate.

BEYOND STEEL

PugnochiusoVieste, FG

Appia EnergyMassafra, TA

AlbarellaIsola di Albarella, RO

Elet.CaSigna, FI

ETA ManfredoniaManfredonia, FG

Gabetti Property SolutionsMilano, MI

ImatFontanafredda, PN

OskarMezzolara di Budrio, BO

Le TonnareStintino, SS

Made HSEGazoldo degli Ippoliti, MN

EuroEnergy groupLainate, MI

Marcegaglia BuildtechMilano, MI

Marcegaglia BuildtechGraffignana, LO

Marcegaglia BuildtechPozzolo Formigaro, AL

Marcegaglia GulfDoha, QATAR

Marcegaglia PerùLima, PERÙ

PlantTimişoara, ROMANIA

CastelMonastero, SI

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