FERALPI GROUP: 2024 CONFIRMS AN INNOVATIVE, SUSTAINABLE, AND SOCIALLY RESPONSIBLE APPROACH TO A NEW GENERATION OF LOW-IMPACT STEEL
TECHNICAL INVESTMENTS AT 223 MILLION EUROS, WITH OVER 80% IN ESG
2024 CLOSES WITH RISING PRODUCTION VOLUMES (+6.4% YOY) AND DECREASING REVENUES DUE TO LOWER SALES PRICES. HIGH RAW MATERIAL COSTS WEIGH ON RESULTS
- Steel production at 2.6 million tons
- Revenues at 1.6 billion euros
- 1.7 billion euros of economic value generated for stakeholders
In a market environment marked by economic uncertainty and regulatory pressures toward sustainability, Feralpi Group continues its journey to concretely contribute to the transformation of the steel industry.
With significant investments in innovative and sustainable technologies to advance business processes, Feralpi reaffirms its commitment to producing low-impact steel.
RESULTS AND VALUE GENERATED
Feralpi Group's 2024 Integrated Report shows a slight increase in production volumes to 2.6 million tons (+6.4% YoY) and revenues of 1.65 billion euros, down from 1.72 billion in 2023, due to a reduction in sales prices. The value of production stands at 1.730 billion euros.
The Group's international footprint is confirmed, with 62% of revenues generated abroad, a slight increase from 61% in 2023, with 9.5% in non-EU countries. In a European context that is becoming more regional, the Group has demonstrated its ability to diversify its outlet markets, focusing on new areas such as Poland and the Czech Republic.
The decrease in sales revenues for the year was accompanied by an increase in the impact of production factors on revenues. In particular, the rise in raw material costs led to a significant reduction in EBITDA, which fell to 27.6 million euros.
After accounting for depreciation and amortization of 70.3 million euros, which increased due to the Group's investment activities, the net result is a loss of 37.7 million euros.
The Net Financial Position stands at 155.5 million euros, compared to 45.5 million in the previous year, following substantial technical investments made during the fiscal year.
Despite results that reflect the market situation, the Group generated 1.7 billion euros in economic value for its stakeholders, an increase of 7% year-over-year. Notably, the value for employees grew by 10% year-over-year, which is more than proportional to the 3.3% increase in the number of employees.
In the first half of 2025, an improvement in EBITDA was recorded for both construction and specialty steels. Sales prices remain low, even as sales volumes hold steady. In Germany, there has been an increase in revenues, but many uncertainties remain in all European markets for the second half of the year.
THE MARKET CONTEXT
The steel sector is feeling the effects of the macroeconomic events impacting the market. China is strengthening its leadership year after year with significant overcapacity that threatens other markets, while Europe is losing ground, now representing only 6.8% of global production. Germany is falling back, with a 12% contraction. Italy, although with a slight increase in production compared to 2024 thanks to the stability of long products, accounts for 1.1% of total global production.
INVESTMENTS
Despite a highly uncertain environment, the Group invested 223 million euros in various projects during 2024. These include the finalization of the new rolling mill at the Feralpi Stahl plant in Riesa, Germany, where the production of spooled coils weighing up to 8 tons for the construction market has begun. This is achieved through an innovative, fully electrified process with zero direct emissions. In Lonato del Garda, a new spooler line was built, a new water treatment plant for the steel mill and rolling mill 1 was commissioned, and a 437 kWp photovoltaic system was installed. In Lecco, at Caleotto, a modern Garret line for special steels was launched, expanding the size range, improving product quality, and ensuring greater flexibility. To cover a portion of its electricity needs, the Group has also approved investments in photovoltaic power generation plants and is studying wind power projects.
Following the market launch of FERGreen, a range of low-environmental-impact construction products with some of the best EPDs (Environmental Product Declarations) on the European market, the Group has approved a 2026-2028 investment plan. This plan will see the implementation of decarbonization projects, including an innovative conduction heating plant and improvements to the scrap yard.
EMISSIONS REDUCTION: ACHIEVEMENTS AND FUTURE TARGETS
In a highly volatile context, Feralpi Group has continued to pursue its commitment to sustainability, confirming a business approach that combines technological innovation and environmental responsibility.
During 2024, Feralpi invested significantly in reducing CO2 emissions by adopting advanced technologies and optimizing resource use. The company has consistently pursued both improved energy efficiency, through increased use of renewable sources and consumption optimization, and the continuous evolution of its production processes, with a particular focus on digitalization and automation. This commitment has led to a 39% reduction in specific CO2 emissions compared to 2022 and a 22% reduction in water use. ESG commitments, goals, and results are reported in the ESG Scorecard, which aims to strengthen the company's sustainability journey through the annual monitoring of 14 objectives.
EMPLOYEES
In 2024, the Group remained focused on the organizational development of the Technical Department, the integration of new staff, and the development of internal skills to respond to an increasingly competitive and dynamic economic environment. As of December 31, 2024, Feralpi Group's workforce reached 1,986 people, a 3.3% increase compared to 2023, with a balanced distribution between Italy and Germany. In 2024, the "Make The DiffHERence" program was launched, a new edition of the Technical Graduate Program, primarily dedicated to integrating female staff into the company, who currently represent 11% of the total workforce.
"In a difficult macroeconomic context that impacts the daily life of our businesses, at Feralpi we have strengthened our conviction that it is increasingly crucial to structure a business model that is not only resilient to crises but also capable of harmonizing business continuity with the achievement of environmental and social sustainability goals," stated Giuseppe Pasini, President of Feralpi Group. “During 2024, despite a slowdown in steel demand in Europe, we continued to invest extraordinarily, in line with our industrial plan, to expand our product range and produce low-impact steels through the electrification of our production processes.”.