Feralpi Stahl launches new steel rolling mill in Riesa for €220 million

German rebar manufacturer Feralpi Stahl, a subsidiary of Italy’s Feralpi Grour, has officially launched a new steel rolling mill in Riesa, Saxony, with a total investment of €220 million. This is one of the largest industrial investments in green metallurgy in Germany in recent years, MDR reports.

The innovative complex allows steel to be rolled without reheating after casting (direct rolling). This significantly reduces energy consumption: steel billets are fed directly from electric arc furnaces to a 300-meter roller conveyor for rolling. Temperature losses are compensated for by electric furnaces that run on renewable energy. As a result, production is almost completely emission-free.

The plant uses scrap metal supplied from Germany, Poland and the Czech Republic. The raw materials are checked for purity directly at the plant, as the quality of scrap is critical for the steelmaking process.

Despite the general economic instability, the decline in industrial production and high energy costs, Feralpi has decided to focus on innovation and decarbonization. At the same time, the company emphasizes that electricity prices remain a critical challenge – the plant’s consumption is comparable to the needs of the entire city of Dresden.

In response, the company is calling on the German government to take practical steps to reduce electricity transmission tariffs, extend compensation for energy-intensive industries, and introduce an industrial tariff.

The government has already approved a special fund of €500 billion, part of which should go to infrastructure projects that require the company’s valves.

As GMK Center reported earlier, Germany increased steel production by 5.2% in 2024 compared to 2023, to 37.23 million tons. Pig iron production for the year amounted to 24.33 million tons (+2.9% y/y), hot-rolled steel production – 31.61 million tons (+3% y/y). Sales of German steel distributors last year remained almost at the level of 2023.