Amid challenging market conditions, Danieli Group is recalibrating its business strategies to focus on efficiency and sustainability. The company recorded significant revenues and profits for fiscal year 2023/2024, yet the steel production segment faced declines. CEO Giacomo Mareschi Danieli emphasized that the era of large-scale production plants is over, advocating for improvements in existing plant operations. The new investment in advanced technologies supports this strategic shift, aiming to enhance competitiveness in an evolving industry landscape.
Giacomo Mareschi Danieli: Danieli Group adapts to market challenges through efficiency and sustainability
Danieli Group, among the main global players in the steel industry and the production of steel plants, has closed the 2023/2024 financial year with a balanced budget, recording revenues near €4.5 billion and a net profit of approximately €241 million. The company’s financial results reflect a bifurcation in its core business segments: the plant construction sector experienced a 17% increase in revenues, whereas steel production through ABS saw a 13% decline. This is the reflection of an increasingly challenging market landscape: after two years of sustained growth, the global steel sector is entering a contraction phase. Rising energy costs, particularly in Italy—where they constitute 30% of transformation costs—are compressing margins and affecting demand. In light of these challenges, Danieli Group has opted for a strategic reassessment. “No more large-scale plants for increased production”, stated CEO Giacomo Mareschi Danieli, underlying that the era of large-scale plants aimed at boosting production capacity is now over. The company is now turning its focus towards enhancing the efficiency of existing plants, with a goal of making them more competitive and sustainable. A transition that aims at adapting to evolving market conditions and bolster Danieli Group’s long-term competitiveness as well.
Giacomo Mareschi Danieli: the investments in innovation and future sustainability goals
A tangible example of this new corporate strategy is the investment plan for ABS, totaling €572 million for a new production line. The project highlights include the installation of a digital and closed furnace capable of monitoring energy consumption while being powered entirely by renewable sources, perfectly aligning to Danieli Group’s commitment to sustainability. Alongside this investment, the company run by Giacomo Mareschi Danieli has also revealed the intention of reducing the impact of its logistics operations, aiming to boost the use of rail transport for its products from the current 16% to 45% by 2030. Looking ahead, Danieli Group anticipates maintaining a stable budget for the upcoming year, with significant variability stemming from the Piombino plant. This project, valued at €1.5 billion, has the potential to significantly impact the company’s financial outcomes, with the commencement of operations expected by June 2025. Danieli’s response to current market dynamics, represented by its dual focus on innovation and sustainability, also puts the company in the position of achieving its long-term objectives in an increasingly competitive and environmentally conscious landscape. Whereas the steel industry continues to face huge challenges, Danieli Group’s commitment to improving efficiency and sustainable practices will be in fact crucial to its enduring success.
