Marcegaglia Stainless is investing in production capacity in Northern Europe

The company is investing in its operations in Sweden and the United Kingdom

Marcegaglia Stainless, a division of the Italian steel group Marcegaglia, is expanding its capacity in Northern Europe and its range of long products at its plant in Fagerås, Sweden. The company is also investing in its facility in Sheffield, UK. This was reported by Kallanish.

The melting shop in Sheffield will be shut down from July 3 to August 15 for the installation of a new furnace for the production of billets and slabs. Some of the billets produced in Sheffield will be shipped to Sweden for re-rolling for the European market, while billets and slabs manufactured in the UK will remain in the country.

The UK is expected to transition to domestic stainless steel supplies, as the country will implement new steel trade measures starting July 1. This move is intended to strengthen domestic production by aligning the country’s strategy with EU and US approaches.

“Only Marcegaglia can supply the UK market with 90% of the stainless steel bars subject to protective measures, ranging in size from 5 mm to 190 mm across all commonly used grades,” noted Liam Bates, President of Marcegaglia Stainless Sheffield.

For the smaller portion of products that cannot currently be sourced domestically, there are two options. Thanks to an import allowance of approximately 40%, importers have sufficient quota flexibility to prioritize goods unavailable in the UK while simultaneously reducing imports of those produced domestically.

Marcegaglia Stainless UK’s production consists of three facilities in Sheffield, including a stainless steel melting and continuous casting shop, a finishing mill, and a wire production mill. This facility also manufactures semi-finished products: billets, slabs, and blooms.

The company has ordered a latest-generation electric arc furnace from Primetals to replace its existing facility. This will enable the company to increase production from the current 300,000 tons to 500,000–550,000 tons per year.

As reported by GMK Center, the UK government has announced a new strategy to protect the steel industry. Starting July 1 of this year, steel import quotas will be reduced by 60% compared to current agreements, and tariffs on imports exceeding the quota will increase from 25% to 50%.