Ruggero Brunori,53,is the son of Giovanni Battista Brunori,who founded rebar producer Laminatoio Valsabbia in 1954,in Odolo,Brescia,Italy.In the early 1980s Ruggero graduated in law,and since 1987 has committed himself to working for the family company,which had changed its name to Ferriera Valsabbia.After several years of experience in the manufacturing and sales divisions,in 1991 he was appointed managing director,a position he still holds.He recently spoke to SteelOrbis about the activities of Ferriera Valsabbia and the situation in the steel markets.
Could you summarize the main steps in the evolution of Ferriera Valsabbia?
The history of our company began in 1954 when my father Giovanni Battista started the production of rebar founding Laminatoio Valsabbia in Odolo.In 1963 the company changed its name to Ferriera Valsabbia,increasing the production of rebar,using ingots bought from other steelmakers.Five years later,in 1968,the first electric furnace for scrap melting was commissioned,making Ferriera Valsabbia an integrated producer.In 1971 the second furnace began to operate and the capacity reached about 70,000 mt per year.In the 1980s further investments were implemented,aimed at an effective rationalization of the production facilities.Ferriera Valsabbia has consolidated its presence in Germany,France,Switzerland,Austria,the United States and several Eastern European countries.In the 1990s the company's evolution continued at all levels,and Ferriera Valsabbia started implementing a quality management system.In 1993 the production of welded mesh was initiated at the new plant of Sabbio Chiese,a town adjacent to Odolo.In 1996 the company opened a new factory in the Czech Republic,followed by another production site in Slovakia(2004).Between 2004 and 2008 major investments occurred,such as works on upgrading and the commissioning of a new rolling and bar-packaging facility in Odolo,which allows the monthly production of volumes that previously were reached only in a year.Currently,Ferriera Valsabbia employs 325 people.
What is the current role of Ferriera Valsabbia in the Italian and global steel markets?
Ferriera Valsabbia is active in the production and sale of rebar and welded wire mesh,and thus its main markets are linked to the construction sector.Thanks to the experience gained in over fifty years,we are able to meet all customers'needs and we possess the necessary certifications to sell our products all over the world,such as in the United States,in China and in the Middle East.Based on the contingencies of the markets,we try to focus our export activity on certain areas rather than on others.Currently,for example,50 percent of our business is directed to the local market,while the remainder is split between neighboring European countries and North Africa.
What have been the consequences of the global crisis on the performance of your company?
We have certainly felt the effects of the crisis.In 2010 our turnover amounted to€195 million,more or less unchanged from the previous year(€196.3 million),but far from the€504.4 million recorded in 2008.The production volumes followed the same trend:last year rebar production came to 340,000 mt,compared to 442,000 mt in 2009 and 506,851 mt in 2008;welded mesh production also fell significantly.After the economic annus horribilis,the markets have changed,competition from new players has appeared on the international steel market scene and is getting more difficult.In this context,Italian mills are unprepared,also due to lack of infrastructure and due to normative obstacles which reduce competitiveness.However,Ferriera Valsabbia has adapted to the new business needs,confirming its leading role in construction steelmaking.
Speaking of competitiveness,how do you view the role of emerging countries in the international steel market?
The so-called BRIC countries-namely Brazil,Russia,India and China-are seeing a strong economic expansion.In this context,the consumption of steel products is rapidly increasing,primarily rebar,which is the material par excellence in a growing country that needs new infrastructures and construction works.In addition,the steel industry in these countries is making big steps not only in terms of quantity,but also in quality.Of course there are differences within the BRIC countries:China indicates a strong acceleration in steel consumption,while in the other countries the development of the steel market is less pronounced,but still significant.Also,the role of Turkey is important in the new equilibriums which are being shaped in the Mediterranean region and which interest our company.In general,the BRIC countries and Turkey indicate a great vitality and openness to innovation,investments and development.The situation is different in the West,where the presence of economic,cultural and normative ballasts tends to suffocate the revival.Our companies have to bear high production costs(beginning with those for energy)and the lack of modern and efficient infrastructures,all of which derive from a political system which is continuously facing emergencies in order to deal with the effects of erroneous industrial policies.What we would need is a long-term industrial plan instead.The common good is often subdued to ideological and particularistic reasons.For instance,I am referring to the suspension of several construction projects due to the power of lobbies who do not face up to their responsibilities.Unfortunately,politics appears unable to go beyond the principle of consent,both locally and in Europe,creating obstacles to the activities of companies.?In Italy the situation is even more problematic,given the lack of consideration of companies'social role.
In addition to these issues,the overcapacity which characterizes the steel industry in developed countries needs to be considered.Can the integration of steelmakers be a means of overcoming this situation?
Overcapacity is a serious matter.The path of integration among steelmakers is desirable,yet it is difficult to follow,because it involves the unification of industrial companies with different histories and needs,often characterized by strong family imprints-though I think the latter factor has not affected modern management of companies.In a context characterized by a chronic gap between demand and supply,it would be fundamental to have appropriate development policies,implementing infrastructure renewal projects-I think for example of the many dilapidated port facilities in Italy-that would bring fresh air to the steel industry and would help to revive the economy.
At the end of the year,new European regulations concerning the distinction between waste and secondary raw materials should become effective.What will be the impact on the ferrous scrap trade?
The new rules should represent a step towards the achievement of a uniform European legislation.The problem is felt particularly in Italy,as ferrous scrap traders and consumers often have to deal with red tape and confusing regulations that hamper trading activity.Unfortunately,the interests of the most influential countries,especially Germany,often tend to prevail in the EU,and this tends to weaken the EU's ability to act and tends to represent a handicap when competing with emerging countries with strong industrial policies.In Brussels there are no plans for the medium to long term and there are no representatives capable of planning for the future.
