East meets West: European synergies in precision tubes. Bernd Estermann, Marcegaglia Poland
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1 East meets West: European synergies in precision tubes Bernd Estermann, Marcegaglia Poland
2 Good afternoon. My name is Bernd Estermann, commercial director at Marcegaglia Poland in Kluczbork. 2
3 Marcegaglia Kluczbork has been inaugurated in October The plant represents the most important investment in the Opole Region in the South of Poland, Silesian area, and one of the largest in the country. This investment is launching Marcegaglia presence to lead the way in the New Europe. 3
4 2011 has been our starting year. As you can see on the screen here, in Poland we have found a tube market that has been characterized by a production increase from 2010 to and a substantial balance between tube production and tubes sales. 4
5 This means that on a local level there seems to be quite no stock policy at all among producers. We will come back later on this matter. 5
6 The Polish tube market in the last year has also registered a significant increase in exports - about tons - compared with 2010, mainly towards Germany. On the other hand, if we talk of imports the total figure has increased - as much as tonnes - reaching the level of 512 thousand tonnes. 6
7 The largest importers to Poland are Italy and Germany, but also Czech Republic and Slovakia. Our new production, of course, will start to change this balance in the market. 7
8 Marcegaglia, as you probably know, was founded in 1959 in Northern Italy, and is - since many years - a well-established manufacturer of welded tubes. Since the 80s, we have expanded our carbon steel sales network throughout Europe, mainly from Italian production, then from the UK, and now Poland is adding to that expansion. 8
9 So, we can say that tubes from Kluczbork today come from the same knowledge base, the same quality state-of-the-art procedures and the same sourcing system of pre-materials as we do since many years in our Italian Headquarters. A group with a consolidated manufacturing capacity of 3 million tons per year in carbon steel tubes and about 3.5 million tons per year in carbon steel flat products. 9
10 Marcegaglia Kluczbork spreads over 80,000 sqm of covered surface within an overall area of 427,000 sqm. Total investment: 125 million euro. Construction started in late 2006 and reached its financial peak within the investment campaign that has led Marcegaglia to open other two plants in addition to the one in Poland, which are China and Russia. 10
11 Today Kluczbork is employing 150 people and we expect to reach more than 200 workers by the end of
12 At Kluczbork we can count on: 6 tube mills - processing thickness from 0,8 to 8 mm and sections from 12 mm to 168,3 mm, round and shaped; 2 slitting lines from 0,3 to 6 mm thickness and 2 cut-to-length facilities for sheets from 0,4 to 12.7 mm. 12
13 Our final output of tubes in considering that it has been our starting year - has been about 50 k ton. Our forecast for 2012 is to reach 100 k ton. 13
14 As a part of Marcegaglia production chain, Kluczbork can count on a peculiar feature that represents an important added value compared to other local companies: a large warehouse area that allows the plant to serve as the main logistics hub for the complete range of Marcegaglia tubes and flats for the Central, Eastern and Northern European markets. 14
15 This means stock availability of mostly used qualities and sizes. This means service and efficiency or the customers supply chain. 15
16 Products from Poland, products from Italy, commodity materials and steel specialties, prepared and ready to be delivered to the market. And all is managed by our local pre-sales and after-sales service. 16
17 A note about flats: the most recent development in Kluczbork is the production of narrow strips and sheets. As for tubes, for these products we can count on the same know-how and service level of our Italian productions for tailor-made solutions. 17
18 Speaking of tubes, our current key applications include: industrial - such as heating and mechanical - agricultural sector - such as greenhouses and tunnels - furniture making and constructions. 18
19 We are working inside a domestic economy where GDP has improved by 3.9% from 2009 to 2010, and +4.3% from 2010 to And, just to note some other Polish official statistics (we are talking of progress 2010 to 2011): - the metal-steel sector in general: +12% - the metal products sector: +19% - energy (including long distance heating tube): +2,3% - furniture industry: +21% - equipment for transport: +35% 19
20 And we should mention another Marcegaglia plant in Poland - started 5 years ago - that is dedicated to insulated panels and refrigeration components. 20
21 Of course, we cannot forget the automotive industry. Here, we can say, that Marcegaglia at a global level is now an established supplier with many products, made from carbon and stainless steel grades. Poland is leading the growth in Eastern Europe together with Czech Republic in the auto industry and we are gradually developing our Polish production to supply this sector. 21
22 What s next? Growth has always been an obsession for Marcegaglia since its foundation. So after consolidating this first phase of investment in Poland, the plant may be expanded to a second step of production capacity in the same area. 22
23 I wish to thank you for your attention. We are available for any further information at our stand all day long. I wish to remind you the next speech about flat products at Thank you. 23
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