Investments and results

To relaunch the Group and conclude the transition process successfully, the current management has focused its attention and resources on three main areas: innovation, environment and safety.

Innovation

From the production point of view, the strategy is to focus on the high value added of verticalized products. This is the reason for the major investments in modernizing the ZIN 4 galvanizing line (for cutting tin) and the completion of ZIN 5, a fully automated line which is characterized by its high operational flexibility, as well as high performance in terms of environmental sustainability and energy efficiency.

With the launch of ZIN 5, ILVA has strengthened its galvanized segment, which currently has 5 production lines with a total capacity of around 2.5 million tonnes.

Increase of production capacity

High added value

Zin5

  • Investment: € 125 million
  • Capacity: 460 kt/year

Zin4

  • Investment: € 400,000
  • Cutting Velocity: 150 sheets / minute

Environment

Important environmental upgrading and decontamination work has been done during the commissioners’ management, particularly in Taranto. Here’s a list of some of it. 

Reduction of dust emissions

  • Covering on 4 sides of 39 km of belt conveyors (65.4% of the total length)
  • Coverage of 11 buildings out of 19
  • Coverage of 145 towers, i.e. 66.8% of the existing towers
  • Implementation of wetting system
  • Wind fences and buffer zones in the stockyard area
  • Installation of hydrants and fog-cannons for stockpile wetting
  • Activities started for the coverage of Raw Materials Stockyards

Reduction of emissions from the iron making process

  • Condensation of BF slag vapours, dedusting of casthouse and dedusting of BF1 Stock House
  • Dedusting of BF2 Stock House 
  • Dedusting of BF4 casthouse 

ELIMINATION of any source of “dusting” phenomenon

  • Installation of a new unloader on Taranto’s no. 2 pier to unload materials from the vessel directly to the wharf in a closed environment.
  • Installation of environmentally friendly grabs for raw materials unloading at the Pier.

Development of the Waste Management Plan

  • Start-up of the new landfill - “Mater Gratiae G3” - for non-hazardous special waste from industrial processes.

  • Activities completed for the removal of disused tyres and railway ties stockpiles.

safety

ILVA is implementing a detailed programme of improvements to safety in its various facilities.

HEALTH & SAFETY TRAINING

  • Internal and external training on safety themes
  • Campaigns to upgrade plant reliability and maintenance
  • Higher spending on IPDs (Individual Protection Device) and work clothing

MAINTENANCE

Over 1.2 billion euros spent between 2013 and 2016.

  • Pig iron and steel areas: over €826m spent on maintenance between 2013 and 2016
  • Overall spending in 2016 reached around €270m, up 15% on 2015.
  • Spending on spare parts purchasing and 3rd party maintenance rose in 2016.

Economic, financial and production performance

Financial results are the first signal that the chosen strategy is going in the right direction.

Annual turnover is up compared to 2015

Revenue

1 Steel Net Revenues

2016 has shown a significant recovery of the financial performance

Ebitda

1 Group EBITDA

Production in 2016 has shown a great recovery compared to the previous year

Production

2016 ended with a growth in shipped volumes

Shipments