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Marcegaglia grows in Poland amid more headwinds from imports

ltalian re-roller and tubemaker Marcegaglia remains positive about its Polish welded tube plant and service center for strip and plate in Kluczbork, expecting growth of steel consumption during next four-five years, it told Platts.

"On the other side, the Polish market, one of the biggest in Eastern Europe, is very interesting also for foreign producers, therefore [the] impact of imports is relevant," the company commented.

ln fact, Marcegaglia Poland is experiencing a slight reduction in demand at present. "Due to the particular situation of prices, affected by very aggressive import from the Far East, the market is actually in wait and see mood," it explained. "Anyway we are confident to achieve the budget 2015 and for sure we estimate to grow over the next two-three years," Marcegaglia commented.

Marcagaglia's Polish units, in addition to Kluczbork, represented also by Praszka plant specializing in insulating panels, steel handles, condensers and heat exchangers, have been able to consistently improve its sales results, from PLN 541 million in 2012 to PLN 725 million in 2014 and PLN 800 (€189) million anticipated in 2015.

The increase in revenue has coincided with growing output. Last year Marcegaglia Poland produced 150,000 metric tons of welded tubes and processed 80,000mt of strips and sheets. This year the company is set to make 180,000mt of welded tube and process 110,000mt of flat products.

The Polish division's capacity utilization rates have so far reached 75% for the tube production and 70% at the service center, based on 15 shifts per week. Marcegaglia has been operating in Poland for over ten years. lts first facility, in Praszka, between Wroclaw and Czestochowa, opened in 2004. ln 2010 it launched it's welded tube plant and service center in nearby Kluczbok.

source: SBB Platts