Top 500, Benedetti (Danieli): "The steel industry of the future is small, green, and regional."

In the next five years, the path is already set. Steelmaking, like many industries, relies on research that can take ten to fifteen years. Over the last 10-15 years, we've invested about 140 million euros annually in research and prototypes. This is the average. We are presenting the mini-mill of the future: a regional steel factory excluding large processes of 8-10 million tons. It uses the regional market, possibly scrap and iron from the region, with contained logistics. It remains competitive even with small production of long steels. We've estimated and are already winning in the United States with four plants, competitive from as low as 300,000 tons per year up to 1.2 million tons with the same technology. For flat products like in Taranto, from 0.8 million to 3.5 million tons per year. This compact regional ideology is competitive even against large complexes.

Thank you, director, for the clarification. This concept is revolutionary, with due modesty to the team that worked on it, as it's unique and based on technological research in continuous casting, liquid steel, continuous casting, and rolling. With the production we've achieved, we can directly feed the rolling mill without interruptions, from scrap and iron ore to finished product. This means less energy use, hence greener. Utilization of bottom refractory reduces CO2 emissions. We're close to zero emissions, with circular steel using slag for asphalt, eco-gravel, and precast blocks. The theme is very clear.

We've developed an integrated mini-mill that uses only gas, not coal. In Taranto, which is a large integrated plant, we have a direct reduction plant that can operate with gas or hydrogen, depending on convenience. With Saipem, since our process reduces ore to pellets loaded directly hot into the electric furnace, we can capture 95% of CO2. If we can use CO2 to make methanol, we could have an integrated plant with maximum emissions of 10% of current coal-based plants.

Yes, exactly agreed. However, the hydrogen component now is, I believe, a political slogan, let's say, because the cost of hydrogen pipelines is impossible to use. So we're talking 10-15 years from now. Also, the hydrogen production method needs to be considered; if I don't produce green hydrogen, or if producing hydrogen consumes more energy than using gas, it's not viable.

Metinvest asked us to participate as shareholders, but we're not keen, as they've delegated us to handle national bureaucracy. They're convinced we can build an outstanding plant near Danieli. It will be a vital technological representation for us, like our BSA plant for long products in Brescia, and in Trieste, something outstanding for flat products. We have designs for sheds that fit the layout, with images of the Barcolana. It's a plant with no emissions because it doesn't produce steel; it uses Ukrainian slabs, transforming steel to steel based on competitiveness. It should bill about 2.5 billion euros, creating induced services. Our goal is Central Europe, not just Italy, with quality production and added value. We're waiting for permissions, and Metinvest will present to their board. With 40,000 employees, it's a serious company. We hope to have all approvals by May for their mid-year board meeting.

Regarding numbers, we've used two principles: first, we've always grown concentrically in our core steel business, avoiding diversification unless we have an innovative advantage. Diversifying based on success in one area is risky. We limit expansion to profitable opportunities. We don't want to grow for growth's sake. We aim to be more European, mediating market reflections between Italian and European ones. We see growth from current 800 million to perhaps 1.3 billion, depending on combinations.