MILAN; Apr. 24 (Class Editori) - Danieli & C, global leader in the production of highly technological equipment for steel, received orders from Vietnam and Russia. According to the company's website, the group has obtained two contracts in the past two days. The first one: Danieli will supply Magnitogorsk Iron & Steel Works-MMK with a new Q-Melt technology package in the Chelyabinsk region of Russia. The Q-Melt, a device that improves oven performance and worker safety, will allow a further reduction in operating costs (opex) for an already running electric arc oven (EAF), which is loaded up to 40% with hot metal.
Production savings expected for the MMK EAF will be greater than $ 2.5 per ton of liquid steel guaranteed, with a refund of just 8 months. The package will be installed this summer during a scheduled maintenance shutdown. After the first installation in 2016, Danieli Q-Melt has updated more than 15 EAFs in the United States, Europe, Russia, China, the Far East, Africa and the Middle East with production savings of up to $ 4 a ton.
The second order arrived from Hoa Phat, the largest steel producer in Vietnam, ordered from Danieli a new rolling mill of 1 million tons per year of wire rod to be installed in the Dung Quat complex. This will be the third rolling mill for long products in Dung Quat, all supplied by the Italian company which will also supply the complete electrical and automation system for the entire line. The amount of these orders has not been disclosed.
However, “the plant production business continues to collect orders even in this difficult macro context. It is worth noting that the Q-Melt technology is gaining ground to make the existing electric arc oven more ecological”, commented Mediobanca Securities, reaffirming the neutral rating and the target price at € 20.20 on the Danieli stock, “the product portfolio and balance sheet are solid enough to navigate the Covid-19 emergency”.
Moreover, Giacomo Mareschi Danieli, CEO of the group, recently stated in a letter to his clients that Danieli is fully operative, thanks to a global organization and its production and technical centers, currently located in China, India, Thailand, Vietnam, Ukraine, Poland, Russia, as well as in Europe and the United States. “Therefore, despite the epidemic, this organization allow us to ensure compliance with the ongoing contracts and the commitment made to our clients”. (All rights reserved)
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