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Xinhua Silk Road
CLASS

Danieli aims for a 1-billion worth turnover in China by 2026

February 18, 2021


Abstract : In order to reach the target and to draw closer to Chinese customers, the Group wants to buy two medium-sized companies per year. The market of the People’s Republic of China is increasingly important worldwide, representing 65% of the total steel production.

MILAN, Feb. 8 (Class Editori) -- Danieli China aims for a 1-billion worth turnover by 2026. "In order to reach our goal, we will buy two medium-sized companies per year so that we will draw closer to our Chinese customers. Our presence in China is very important," Francois-David Martino, CEO of Danieli China, explained during the China Awards, the event held by Class Editori together with the Italy China Foundation. "We expect a major change in the way of thinking of our customers that want to produce quality steel, Danieli's strongest point, since our company is a global leader in steel production".

The Group based in Buttrio (Udine, Italy) doubled its revenues in Asia so far. "The Chinese market is increasingly important worldwide, representing 65% of the total steel production. In this country the demand for steel is really strong".

Last November, the Group signed an agreement with Hebei Iron and Steel (HBIS), the giant of the steel industry that produces around 45 million tons of steel. The partnership does not only include technology supply: Danieli will also be able to become a partner in one of the main Group's companies. Danieli will own 1.5% of the steel mill, which will be listed on the Stock Exchange, while the joint venture for the engineering company is a 50:50 one. Last June, Northern Copper Industry selected Danieli Fröhling's rolling technology for its new finishing mill and this technology will be installed in Yuncheng, in the province of Shanxi.

For this year, as explained by the Chairman, Gianpietro Benedetti, Danieli is aiming for a 350-million turnover. According to the Chairman, "from our point of view, the Chinese industry will be our future competitor. Our strategy has been to have a factory onsite (with 1,500 employees) to serve the local market and to compete with Chinese companies abroad. Initially, we were favored by our technology gap, which once was greater than China's one. However, now this gap is narrowing and thus cost competitiveness is crucial. So today our challenge is to become competitive at the same cost as Chinese companies locally. (All rights reserved)

(Source:Class Editori)

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