cold drawn bars division March 2017 1
Antonio Marcegaglia Chairman Chief Executive Officer Emma Marcegaglia Vice Chairman Chief Executive Officer Marcegaglia Specialties is dedicated to the manufacturing and processing of stainless steel products and cold-drawn bars. Founded in 1959 and fully owned by the Marcegaglia family, the group is headquartered in Gazoldo degli Ippoliti, Mantova. Focusing on downstream processing within its extended value chain, Marcegaglia develops the world s widest range of customer tailored steel semi-products and finished goods. The Marcegaglia business model relies on: a combination of high flexibility and economy of scale high diversification of products/markets/industry segments capillary network in sale, international network in purchasing. COLD DRAWN BARS DIVISION March 2017 2
Marcegaglia group at a glance 10% OTHERS* 5,6 million ton processed yearly (2016) 4,1 billion euro sales (2016) 6,500 employees 90% STEEL 1 st product range in the world, in terms of width and variety 42 plants, 60 sales offices 210 representatives 15,000 customers 6,000,000 sqm manufacturing areas * Others include metal solution for building industry, components for the Appliances Industry, Tourism and Real Estate COLD DRAWN BARS DIVISION March 2017 3
Marcegaglia group worldwide presence Bremen Düsseldorf Praszka Kluczbork Dudley Yangzhou Lyon Barcelona Garuva Vladimir Istanbul Pune Gazoldo degli Ippoliti HEADQUARTERS Gazoldo degli Ippoliti Boltiere Lomagna Lainate Dusino San Michele Corsico Gazoldo degli Ippoliti San Giorgio di Nogaro Contino Gazoldo degli Ippoliti Tezze sul Brenta Casalmaggiore Albignasego Forlì Outsourcing inox Osteria Grande Ravenna COLD DRAWN BARS DIVISION March 2017 4
Marcegaglia group key features Ownership 100% Marcegaglia family Strong market presence (more than 15,000 customers) Strong company values Wide range of products Focus on quality, service, innovation High diversification of markets Obsession with growth, constant and self-financed throughout 50 years Economies of scale + production flexibility Unique strategic positioning COLD DRAWN BARS DIVISION March 2017 5
Marcegaglia group key features OBSESSION FOR GROWTH Turnover Production 8.000.000 5.000.000 4.500.000 Compound annual growth rate = ~8.2% (year 2002-2014) euro/000 7.000.000 6.000.000 4.000.000 3.500.000 5.000.000 3.000.000 4.000.000 2.500.000 3.000.000 2.000.000 1.500.000 2.000.000 1.000.000 Recovery from crisis lows = +62% (year 2014 vs 2009) 1.000.000 500.000 0 4.090.000 4.127.000 4.190.000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 4.100.000 4.100.000 0 YEAR 1959 1980 1990 2000 2002 2004 2006 2008 2010 2012 2013 2014 2015 2016 4.244.885 3.939.407 3.460.232 2.699.332 2.603.361 1.987.547 1.694.817 3.821.874 2.526.612 4.320.825 TONS 1000 4.600.000 5.300.000 4.500.000 3.510.000 2.985.000 2.650.000 1.100.000 350.000 5.600.000 5.400.000 5.300.000 5.100.000 5.000.000 COLD DRAWN BARS DIVISION March 2017 6
Marcegaglia: Unique Strategic Positioning Horizontal integration - Widest range of products in the world Step Description Activities Output Vertical integration - Full coverage of key transformation steps Steel Production Marcegaglia Group First Transformation Second Transformation Distribution End Users Steel production, via either: Blast furnace - using iron mineral and carbon Electric furnace - using re-melt scrap steel Crude products are chemically and/or mechanically processed to make them suitable for specific industrial purposes Advanced processing to customise steel products on clients specific request Direct selling and/or retailing to industrial clients or further processing under request Iron making Steel making Casting Hot rolling Pickling Cold Rolling Galvanising Pre-painting Tube forming and welding Cutting and slitting Stamping Finishing Distribution Coils Heavy plates Bars Sheets Galvanised, pickled, cold rolled and pre-painted coils Strips Drawn Bars Tubes Coils, strips, drawn bars, tubes in standard format Leveraging on a business model focused on steel processing, Marcegaglia can pass through raw material price fluctuations and maintain highly stable margins throughout the cycle COLD DRAWN BARS DIVISION March 2017 7
Marcegaglia Specialties at a glance STAINLESS STEEL SPECIALTY BARS 900 110 Marcegaglia million Euro Marcegaglia stainless steel turnover (2014) million Euro stainless steel turnover (2014) 9 1 manufacturing plants 70 2 tube lines (18 HF, 42 Laser, 10 TIG) manufacturing plant 2 A/P lines + 2 14 CR Mills drawing benches 26 finishing lines (polishing, mirror-polishing, cutting, bending, annealing) 830 employees 10 145 peeling machines grind lines (finishing) employees COLD DRAWN BARS DIVISION March 2017 8
The Group structure The Group has reorganized its activities by clearly separating the core business (steel) from the diversified activities and creating three different Newcos within the Steel (Marcegaglia Carbon Steel, Marcegaglia Specialties and Marcegaglia Plates) to better pursue dedicated growth opportunities in each segment. PLANTS & SALES OFFICES FLAT PRODUCTS 3 PLANTS ITALY MARCEGAGLIA CARBON STEEL HEADQUARTERS GAZOLDO DEGLI IPPOLITI 3 WAREHOUSES ITALY MARCEGAGLIA CHINA MARCEGAGLIA DO BRASIL MARCEGAGLIA POLAND MARCEGAGLIA UK FIN. MAR. MARFIN Staff Corporate WELDED TUBES 4 PLANTS ITALY MARCEGAGLIA STEEL MARCEGAGLIA HOLDING STAINLESS STEEL PRODUCTS 2 PLANTS ITALY MARCEGAGLIA SPECIALTIES Mariven COLD-DRAWN BARS HEADQUARTERS GAZOLDO DEGLI IPPOLITI PLANTS & SALES OFFICES 1 PLANT ITALY MARCEGAGLIA RU MARCEGAGLIA TURKEY MARCEGAGLIA PLATES HEAVY PLATES 1 PLANT ITALY San Giorgio di Nogaro Building MARCEGAGLIA INVESTMENTS Marcegaglia Buildtech M. Gulf Italia M. Gulf Qatar M. Romania Dalmine LS San Michele Home Products Oskar Imat Energy ETA CO.GE.AM EuroEnergy Group Others particip. Others particip. MARCEGAGLIA BENELUX Engineering Elet.Ca MARCEGAGLIA DEUTSCHLAND Made HSE SALES OFFICES MARCEGAGLIA FRANCE MARCEGAGLIA IBERICA Tourism & Real estate Albarella Others particip. MARCEGAGLIA INDIA Gaia Turismo Others particip. MARCEGAGLIA NORTH EUROPE Palazzo Agricoltura Gabetti Property Solution OTHERS PARTICIPATIONS Metal Interconnector Fontana SIM Consorzio ABSOLUTE Consorzio Absolute Others participations COLD DRAWN BARS DIVISION March 2017 9
Marcegaglia Specialties: company presence The stainless steel activities can count also on the manufacturing units in China and Brasil with a dedicated production of stainless steel welded tubes. MARCEGAGLIA STEEL MARCEGAGLIA CARBON STEEL MARCEGAGLIA SPECIALTIES MARCEGAGLIA PLATES PLANTS M. China Outsourcing stainless steel division M. do Brasil M. Turkey Mariven M. Russia cold-drawn bar division Forlì plant Contino plant Gazoldo degli Ippoliti plant (stainless steel products) COLD DRAWN BARS DIVISION March 2017 10
Marcegaglia Specialties: a unique global player in stainless steel welded tubes Contino Vladimir Forlì Istanbul Gazoldo degli Ippoliti HEADQUARTERS Yangzhou Outsourcing inox Garuva COLD DRAWN BARS DIVISION March 2017 11
Marcegaglia Specialties: a unique global player in stainless steel welded tubes Site Year of start in Stainless MARCEGAGLIA STAINLESS STEEL PRESENCE 2013-2016 Dedicated area sqm Total site area (covered) sqm Welded Tubes /KT Flat Bars/KT Round Bars/KT CR + HR Flat/KT Total Total 2014 2016 2014 2016 2014 2016 2014 2016 2014 2016 Gazoldo, Mn - ITALY 1992 60.000 310.000 19 25 127 180 146 205 Forlì - ITALY 1987 110.000 120.000 155 185 155 185 Contino, Mn - ITALY 2002 7.000 73.000 20 25 20 25 Outsourcing inox - ITALY 2011 40.000 100.000 20 25 20 25 Vladimir - RUSSIA 2010 14.000 14.000 8 15 5 10 13 25 Istanbul - TURKEY 2015 20.000 20.000 10 10 Garuva (SC) - BRASIL 2007 20.000 110.000 13 15 3 5 16 20 Yangzhou - CHINA 2011 30.000 155.000 1 10 1 10 Total 301.000 197 260 19 25 20 25 135 195 371 505 COLD DRAWN BARS DIVISION March 2017 12
MANUFACTURING PROCESS COLD FORMED SECTIONS AND FLAT BARS Marking WELDED TUBES FROM HOT/COLD ROLLED STRIP HOT ROLLED COILS ANNEALED AND PICKLED HOT ROLLED COILS SHEETS FROM hot ROLLED COILS STRIPS FROM HOT ROLLED COILS Annealing Straightening Pickling Marking STRAIGHTENED AND PICKLED WELDED TUBES Annealing and pickling Cold rolling Annealing and pickling Skinpass Tube forming and welding Pickling Marking PICKLED WELDED TUBES STAINLESS STEEL BLACK COILS COLD ROLLED COILS SKINPASSED SHEETS FROM COLD ROLLED COILS STRIPS FROM COLD ROLLED COILS Annealing Straightening Polishing and mirror polishing ANNEALED AND POLISHED/ MIRROR POLISHED WELDED TUBES Polishing and mirror polishing POLISHED/ MIRROR POLISHED WELDED TUBES COLD DRAWN BARS DIVISION March 2017 13
Marcegaglia Specialties Worldwide presence Stainless steel products manufacturing plants - ITALY Contino Stainless steel bright bars Gazoldo degli Ippoliti HEADQUARTERS Stainless steel flat products Forlì Stainless steel welded tubes automotive tubes and pipes, process pipes for fluids, construction and ornamental tubes Outsourcing inox Stainless steel welded tubes construction and ornamental tubes COLD DRAWN BARS DIVISION March 2017 14
Marcegaglia Specialties Worldwide presence Stainless steel products manufacturing plants - WORLD Vladimir - RUSSIA Stainless steel welded tubes automotive tubes and pipes, process pipes for fluids, construction and ornamental tubes Stainless steel flat products Garuva - BRAZIL Stainless steel welded tubes automotive tubes and pipes, process pipes for fluids, construction and ornamental tubes Istanbul - TURKEY Stainless steel welded tubes polished tubes / decoration and corosion tube sector Yangzhou, CHINA Stainless steel welded tubes automotive tubes and pipes, process pipes for fluids, construction and ornamental tubes COLD DRAWN BARS DIVISION March 2017 15
Cold-Drawn Bars According to EN 10277 The manufacturing plant in Contino (Mantova, Italy) is dedicated to the production of carbon and stainless steel cold-drawn and peeled bars, with a yearly capacity of more than 200 thousand tons. COLD DRAWN BARS DIVISION March 2017 16
Typical applications A well-established production know-how and the use of sector-specific steel grades make Marcegaglia s drawn steel bars the preferred choice for machine tools engineering, power transmission and drives, electric motors and other precision components for the mechanical industry. Steel for mechanical engineering applications Steel for electric motors Steel for power transmission and drives COLD DRAWN BARS DIVISION March 2017 17
Major applications for Marcegaglia drawn steel bars also include hydraulic cylinder engineering and several subsystems within the automotive and heavy vehicle industry, among others earth moving machinery and lifting equipment. Steel for automotive applications Steel for hydraulic applications Steel for heavy vehicle applications 18 Marcegaglia COLD DRAWN BARS DIVISION March 2017 18
Upon request, grades and dimensions varying from standard can be considered. Cold-Drawn Bars Min. diameter (mm) 3 Max. diameter (mm) 160 Testing Inline rotating sensor eddy current testing Magneto-inductive testing Optional processing Rolling Chamfering Cut to length COLD DRAWN BARS DIVISION March 2017 19
Main manufacturing standards EN 10277-2 EN 10277-3 EN 10277-4 EN 10277-5 EN 10088-3 Steels for general engineering purposes Free cutting steels Case hardening steels Steels for quenching and tempering Stainless steels for general purposes S235JRC, S355J2C, E335GC+S, C15, C35, C40, C45, C45S, 20MnV6, 080A15 (sec. BS 970) 11SMn30, 11SMn37, 11SMnPb30, 11SMnPb37, 36SMnPb14, 11SMnPb37TeBi, 45S20 C10R, C15E, C15R, 16MnCrS5 C35E, C35R, C40E, C40R, C45E, C45R, CK45, 42CrMoS4V bonificato 1.4305 (AISI 303) 1.4301 (AISI 304) 1.4307 (AISI 304L) 1.4404 (AISI 316L) 1.4104 (AISI 430F) COLD DRAWN BARS DIVISION March 2017 20
Carbon steel cold-drawn bars COLD DRAWN ROUNDS EN 10277-2, -4, -5 drawn - diameter mm 3-80 peeled - diameter mm 20-160 COLD DRAWN ROUNDS 16MnCrS5 acc. to EN 10277-4 drawn - diameter mm 10-80 peeled - diameter mm 85-100 PEELED ROUNDS 42CrMoS4V acc. to EN 10277-5 diameter mm 20-100 GROUND ROUNDS C45 acc. to EN 10277-2 diameter mm 8-120 GROUND ROUNDS 42CrMo54 acc. to EN 10277-5 diameter mm 20-80 COLD DRAWN BARS DIVISION March 2017 21
Carbon steel cold-drawn bars FLAT DRAWN STEEL S235JRC+C acc. to EN 10277-2 width mm 6-400 thickness mm 2-60 FLAT DRAWN STEEL S355J2C acc. to EN 10277-2 width mm 25-100 thickness mm 10-30 FLAT DRAWN STEEL C45+C acc. to EN 10277-2 size mm 20-400 thickness mm 5-30 COLD DRAWN BARS DIVISION March 2017 22
Carbon steel cold-drawn bars SQUARED DRAWN STEEL S235JRC, C45C acc. to EN 10277-2 width mm 8-100 SQUARED DRAWN STEEL S355J2C acc. to EN 10277-2 width mm 20-60 HEXAGONAL DRAWN STEEL S235JRC, C45 acc. to EN 10277-2 size mm 8-30 COLD DRAWN BARS DIVISION March 2017 23
Free cutting steel cold-drawn bars ROUND FREE CUTTING STEEL acc. to EN 10277-3 diameter mm 6-160 SQUARE FREE CUTTING STEEL acc. to EN 10277-3 size mm 13-100 HEXAGONAL FREE CUTTING STEEL 11SMnPb30, 11SMnPb37, 36SMnPb14 acc. to EN 10277-3 size mm 6-100 HEXAGONAL FREE CUTTING STEEL 11SMn30, acc. to EN 10277-3 size mm 8-30 COLD DRAWN BARS DIVISION March 2017 24
Stainless steel cold-drawn bars BRIGHT ROUND BARS EN 10088-3 diameter mm 5-100 BRIGHT ROUND BARS ASTM A 276 / A 479 / A 582 diameter mm 6,35-25,4 HOT ROLLED ROUND BARS EN 10088-3, tol. k13 diameter mm 100-200 HEXAGONAL COLD-DRAWN STEEL acc. to EN 10088-3 size mm 10-80 COLD DRAWN BARS DIVISION March 2017 25
thank you via Bresciani, 16 46040 Gazoldo Ippoliti, Mantova - Italy info.specialties@marcegaglia.com www.marcegaglia.com