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Duferco
Duferco
Duferco
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Duferco Participations Holding SA, is a company based in Luxembourg City, Luxembourg.[4] Its main business is trading, producing, importing and exporting steel.

Key Information

History

[edit]

Duferco was founded in 1979 by Italian entrepreneur Bruno Bolfo. The company initially focused on exporting steel from Brazil. In 1982, it relocated its headquarters to Lugano from New York and São Paulo. Originally a steel trader, Duferco expanded into trading raw materials for steelmaking in the early 1990s, adding coke, coal, iron ore, pig iron, and sponge iron to its trading operations.[5]

In 1996, following the acquisition of the Italian company Ferdofin Siderurgica (later Duferdofin), Duferco expanded its steelmaking operations. It subsequently acquired additional steel mills, primarily in Italy, Belgium, and Eastern Europe.

Since the early 2000s, Duferco has diversified into the energy, shipping, and logistics sectors.[6]

Business

[edit]

Duferco Participations Holding SA operates across three segments: trading; steel production and sales; and energy and services.

Its trading arm covers steel and steel products as well as raw materials for steelmaking. In 2007, trade volume reached 17.5 million tonnes, of which roughly two-thirds were steel and steel products and about one-third raw materials. Duferco operates 20 steel plants, which produced 6.9 million tonnes of steel in 2007. The sales segment markets processed steel products.

The group is also active in selected areas of the energy sector—particularly renewables—as well as in shipping and logistics.[6]

Subsidiaries and debt

[edit]

Duferco Participations Holding SA has numerous subsidiaries, including Duferco Italia Holding S.p.A.; Duferco Travi e Profilati S.p.A.; Duferco Commerciale S.p.A.; Duferco Energia S.p.A.; Duferco France S.N.C.; Duferco Wallonie S.A.; Duferco Bulgaria; Duferco S.A. (Switzerland); Virtual Duferco Group; Ironet Ltd (Romania); and the Duferco Kyiv representative office, among others.[3]

In 2015, Duferco Italia Holding reported a net loss of €13 million and total debt of €234 million.[7]

References

[edit]
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Duferco

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Duferco Group is a diversified headquartered in , , specializing in , production and trading, shipping, and . Founded in 1979 by Bruno Bolfo as a steel trading company, it has evolved into a global enterprise with over 100 operative offices and industrial sites across , , , , and , employing 3,303 people and generating $18.4 billion in revenues in 2024. The company's origins trace back to steel trading operations initiated in New York and São Paulo, focusing on Brazilian steel exports during a period of opportunities. By 1996, Duferco expanded into industrial production through acquisitions of steel assets in and beyond, marking its transition from pure trading to manufacturing. In 2011, it diversified into the energy sector with the establishment of Duferco Energia SpA, followed by the sale of a majority stake in its steel trading arm to Hesteel Group in 2015 while retaining a . In April 2024, founder Bruno Bolfo handed over control to his nephew Antonio Gozzi through a family succession deal. Recent milestones include the 2023 inauguration of a new rolling mill in San Zeno Naviglio, , with a 700,000-ton annual capacity, supported by a €250 million . Duferco's steel division operates 11 companies primarily in , , and , producing approximately 1,000,000 tons of long products annually, including beams, merchant bars, and specialized items like track shoes, all derived from recycled for full recyclability. The energy division, encompassing trading, production, and retail, manages over 703 TWh of energy and gas volumes through subsidiaries like DXT and Duferco Energia, with 82.3 GWh of renewable production in 2024 and operations in markets such as and . In shipping, via the Nova Marine Group partnership since 1994, Duferco oversees a fleet of over 100 vessels, including 66 owned ships focused on and cement carriers, serving 244 clients across 109 countries and transporting nearly 27 million tons of commodities in 2023. The innovation arm explores technologies to enhance these core areas, underscoring the group's commitment to adaptability. Globally, Duferco maintains a strong presence in key regions, with notable facilities including steel processing in , solar energy production in , and shipping offices in , , and . Sustainability is integral, with production emphasizing green , the shipping division aligning with IMO's 50% GHG reduction goal by 2050 through initiatives like the Sea Cargo Charter, and the energy unit advancing renewables and e-mobility with over 35,000 electric charging points in .

History

Founding and Early Expansion

Duferco was founded in 1979 by Italian entrepreneur Bruno Bolfo, along with a group of steel industry professionals, as a specialized aimed at capitalizing on opportunities in emerging markets for steel production. Initially headquartered in New York, , and São Paulo, , the company focused on facilitating exports from developing producers, particularly in , where it quickly established itself as a reliable intermediary without owning any production facilities. The company's early emphasized international trading, leveraging personal networks and market insights to bridge supply from nascent producers to global demand centers. By prioritizing long-term relationships with local mills in regions like , Duferco became the leading independent exporter of Brazilian within its first few years, handling semi-finished products such as slabs and billets for further abroad. This approach allowed the firm to navigate volatile emerging markets effectively, avoiding the capital-intensive risks of while generating steady revenue through volume-based trades. In 1981, Duferco opened its first European office in to tap into growing demand on the continent, followed by the relocation of its global headquarters to Lugano, , in 1982. This move positioned the company closer to major European steel consumers and financial hubs, enhancing operational efficiency and access to financing amid expanding transatlantic and intra-continental flows. Throughout the , Duferco's growth accelerated through opportunistic sourcing from additional developing markets in , including , , and , as well as initial forays into North American distribution channels. By the early 1990s, these efforts had solidified Duferco as a prominent global trader, with offices established across to support diversified supply chains.

Growth in Steel Trading and Production

In the early , Duferco diversified its operations beyond steel products into trading raw materials essential for , including coke, , , , and sponge iron, to strengthen its integration and support global steel producers. This move capitalized on the company's established trading network, enabling more reliable sourcing and distribution for downstream manufacturing. A pivotal step in vertical integration occurred in 1996 when Duferco acquired the assets of the Italian steel producer Ferdofin Siderurgica, which it renamed Duferdofin, thereby entering direct steel production with a focus on long products such as beams and profiles. This acquisition marked Duferco's transition from trader to industrial participant, establishing a production base in Italy's Brescia region and laying the foundation for further manufacturing expansions. Throughout the late and , Duferco expanded its production capacity via strategic acquisitions and s across , targeting facilities specialized in long products like merchant bars, sections, and special profiles to meet rising demand in and sectors. Key moves included additional mill purchases in , , and Eastern , enhancing output efficiency and regional . In 2006, Duferco formed a significant with Russia's NLMK Group to acquire and operate production and distribution assets in Western and the , further bolstering its long products portfolio through shared technology and scale.

Diversification into New Sectors

In the early , Duferco began diversifying beyond its core operations by entering trading to hedge against global market volatility, establishing dedicated units for commercialization and efficiency services. This strategic shift laid the groundwork for broader involvement in renewables, with the formal creation of Duferco Energia SpA in to manage photovoltaic and hydroelectric plants in , expanding into power and gas retail. By 2015, the energy arm further diversified through international expansions, including the launch of DXT Commodities and partnerships in for trading and production projects generating over 185 GWh annually. In the same year, Duferco sold a majority stake in its trading arm, Duferco International Trading Holding, to China's Hesteel Group ( Iron and Steel), retaining a , allowing greater focus on industrial and other sectors. In 2018, Duferco restructured into its four core divisions: , , Shipping, and . Parallel to energy initiatives, Duferco expanded into shipping and starting from its 1994 joint venture forming SiderMarine, which evolved into the Nova Marine Group to support the transport of and raw materials across global routes. This sector grew through strategic alliances in the , building a fleet of over 100 vessels—including carriers and carriers—serving 244 clients in 109 countries by the 2020s, with a focus on flexible solutions for delivery. The arm enhanced efficiency, enabling Duferco to handle nearly 27 million tons of commodities in 2023 despite market challenges. In the , Duferco introduced initiatives to drive and market adaptation, acquiring Mainsim in 2014 for advanced maintenance management systems and establishing Duferco Dev in 2017 to spearhead , AI research, and R&D investments totaling €1.6 million by 2021, with 47% allocated to . These efforts formalized the Innovation Division, integrating technologies for energy transition and environmental solutions, such as solar park developments in producing 1.25 MWp. The division supported business resilience, including digital tools for continuity during the . Marking its 40-year milestone in October 2019, Duferco celebrated with an event in Brescia, Italy, highlighting global growth and adaptation to trends like green steel through the establishment of four core divisions: energy, steel, shipping, and innovation. This anniversary underscored the company's evolution from steel trading to a diversified conglomerate, emphasizing R&D in AI and digitization for future competitiveness. In recent years, Duferco has intensified sustainability efforts, investing in sources such as solar and wind s across , , and , while committing to the Sea Cargo Charter for a 50% reduction in shipping GHG emissions by 2050. Notable recent investments include the October 2023 inauguration of the Smart Beam Manufacturing (SBM) rolling mill in San Zeno Naviglio, , with a 700,000-ton annual capacity, backed by a €250 million investment. In 2024, milestones included the July launch of the Giammoro thermoelectric plant, acquisition of a 20.3% stake in Duferco Wallonie for a 100 MW battery energy storage system , and the establishment of the Duferco Academy for training and development. Annual reports from 2023 onward feature comprehensive ESG reporting, detailing progress in green energy injection—over 2.2 million MWh from renewables in FY2022—and energy efficiency s, including 190 completed initiatives in . These measures align with broader goals of low-impact operations and .

Business Operations

Steel Division

The Steel Division of Duferco represents the group's core industrial operations, specializing in the production and trading of long products, including beams, billets, merchant bars, and specialty profiles such as track shoes and coated flats. In , the division achieved a production volume of approximately 1,000,000 tons, distributed across commodity-grade steels and higher-value specialty products, leveraging furnaces that utilize recycled as the primary input for . This output underscores Duferco's position as a key player in the European long market, with products serving , , and industrial applications across , , and select global regions. Trading activities within the Steel Division are fully integrated with production processes, enabling efficient sourcing of raw materials like and ferroalloys while distributing finished products through a network of 11 companies operating in , , and . This facilitates global supply chain management, with sales reaching over 60 countries and emphasizing customized solutions for sectors like heavy earthmoving equipment. Key manufacturing and processing facilities are concentrated in , including major sites in operated through entities tracing back to Duferdofin—such as the San Zeno Naviglio plant (950,000 tons annual capacity for blooms and billets) and the Giammoro plant (450,000 tons for beams and profiles)—alongside operations in for merchant bars and in for additional processing. Sustainability is a cornerstone of the division's practices, with all produced from 100% recycled , ensuring full recyclability and aligning with principles. The division has invested significantly in emission reductions, exemplified by the 2023 commissioning of a €250 million green energy-powered rolling mill at San Zeno Naviglio, which operates on renewable sources and cuts carbon intensity in production. These efforts contributed to notable projects, such as supplying 540 tons of low-carbon beams for the San Giorgio Bridge reconstruction, demonstrating the division's commitment to innovative, low-emission solutions.

Energy Division

The Energy Division of Duferco Group encompasses energy trading, origination, retail supply, and investments in renewables, serving as a key pillar in the company's diversification beyond . Established in the early initially to hedge the group's global energy needs, it has evolved into a major player across European markets, with operations extending to , , and other regions. The division operates through two primary business units: Energy Trading, led by DXT Commodities, and Energy Production & Retail, managed by Duferco Energia, focusing on solutions aligned with the European Union's decarbonization objectives under initiatives like the Green Deal. DXT Commodities handles the trading and origination of electricity, natural gas, and LNG, optimizing portfolios through advanced forecasting and market analysis on exchanges such as IPEX, EPEX, and EEX. With over 2,500 counterparties and a global footprint including offices in Switzerland, Singapore, the Czech Republic, Ukraine, and Brazil, DXT traded 703 TWh of energy in 2024, including significant volumes of renewable power and carbon certificates to support green transitions. Origination activities include long-term Power Purchase Agreements (PPAs) for renewable assets and trading of guarantees of origin (GOs), renewable energy certificates (RECs), and I-RECs, facilitating the integration of clean energy into European grids. Subsidiaries like Matrix Energia in Brazil further enhance origination, managing an 18 TWh portfolio and developing solar projects to meet rising demand for off-take services. Duferco Energia serves as the primary entity for retail supply and marketing, providing and gas to over 220,000 clients—including households, businesses, and industrial plants—across and broader , with a network covering more than 650,000 supply points (PODs). It offers tailored sustainability-linked solutions, such as the "Pianeta Blu" tariff, which delivers while funding marine recovery initiatives, collecting 38,000 kg through partnerships like Ogyre. In 2024, Duferco Energia supplied 5,203 GWh of , including 318.4 GWh of certified green energy, and 415 million standard cubic meters (Sm³) of gas, emphasizing CO2-free options and energy efficiency services as an (ESCo). The division's renewable investments underscore its commitment to green energy growth, producing 140 GWh from renewable sources in , with plans to reach 60 GWh from alone by 2026 through 40 MW of new panels. Key assets include 16 solar plants and 7 hydroelectric facilities in generating 85.1 GWh (a 49% increase from 2022), alongside Matrix's 44.4 MWp operational solar capacity in targeting 120 MWp by . In , the division commissioned a 60 MW peaker plant at Giammoro, generating 16 GWh, and advanced the 103 MWp Grande Sertão II solar project in , set for completion in late 2025 with expected output exceeding 200 GWh annually. Energy efficiency efforts involve over 190 completed projects, such as with Ecobonus incentives, and 81 ongoing initiatives to reduce consumption for clients. Additionally, Duferco Energia advances e-mobility with over 2,100 charging points in as of and services like the Elettra car-sharing fleet of 160 , contributing to goals of net-zero emissions by 2050 through enhanced renewable integration and sustainable infrastructure.

Shipping and Logistics Division

Duferco's Shipping and Logistics Division manages a diverse fleet and integrated services to transport steel products, raw materials, and cargoes across global routes. The division operates over 100 vessels, including 66 owned ships such as bulk carriers under 40,000 DWT, smaller under 15,000 DWT, and specialized cement carriers, supplemented by time-chartered and commercially managed . These assets support efficient , serving 244 clients in 109 countries and delivering nearly 27 million tons of commodities in 2023. Complementing sea transport, the division's logistics operations provide intermodal handling, storage, and multimodal transportation via water channels, railways, and roads, facilitating seamless movement of cargoes from ports to inland destinations. Key facilities include the Garocentre Terminal in , operated by Duferco Logistique, which offers customized intermodal solutions and modal shift analyses for regional and international flows, and Duferco Terminal Mediterraneo in , —a multipurpose terminal providing stowage, warehousing, reefer services, and integrated sea-road-rail connectivity. These assets enhance Duferco's capabilities in brownfield rehabilitation and environmental management, particularly in . The division has experienced significant growth in shipping capacity since its as a in 1994, evolving from Mediterranean-focused operations to a global network with offices in 13 cities, including Dubai, , and . This expansion, through strategic alliances like the partnership with Nova Marine Group, has bolstered Duferco's ability to handle increasing volumes on international routes, particularly in the Atlantic and Mediterranean regions. Deep integration with Duferco's trading divisions enables end-to-end , where shipping and directly support production, sourcing, and distribution, optimizing costs and delivery timelines. For instance, the fleet's flexibility in vessels allows rapid response to trading demands, while intermodal services reduce bottlenecks in inland transport. Emphasizing , the division prioritizes low-emission practices, including adherence to the International Maritime Organization's (IMO) goal of 50% reduction by 2050 via the Sea Cargo Charter, and participation in the Shipping Decarbonisation . operations further promote eco-efficient solutions, such as hybrid at terminals and intermodal shifts to lower-carbon modes, aligning with broader environmental initiatives in Duferco's European sites.

Corporate Structure and Financials

Key Subsidiaries

Duferco's operational network is structured around a core and several key subsidiaries that manage its , , trading, and related activities, primarily concentrated in with extensions to and . The primary holding entity is Duferco Participations Holding S.A., based in , which oversees group investments, strategic direction, and consolidation of operations across divisions. In , Duferco Italia Holding S.p.A. serves as the central entity for coordinating production and operations, holding stakes in various domestic assets and facilitating integration within the group's industrial activities. Duferco Energia S.p.A., headquartered in , specializes in electricity and gas trading in the , alongside production through solar and hydroelectric plants, serving residential and business clients across . Duferco Commerciale S.p.A., established in , functions as the Italian trading arm under the Duferco International Trading Holding (DITH), focusing on the , and distribution of products with a network of warehouses and clients in and . Steel production in Italy is anchored by entities like Duferdofin S.r.l., formerly a joint venture with Nucor Corporation until its full reacquisition by Duferco in 2020, which now operates independently to manufacture long steel products such as beams and bars at facilities in San Zeno Naviglio and Giammoro. In Belgium, Duferco Wallonie S.A. manages steel processing alongside environmental initiatives, including brownfield reclamation and the development of solar parks, such as the 1.25 MWp installation in Ittre. Duferco France S.N.C., located in Aubervilliers near Paris, handles steel trading and distribution, supporting the group's supply chain with a focus on flat and long products for the French market. Further afield in , Duferco maintains Duferco Energy Ukraine LLC in to support trading and origination in and amid regional operations. In , the core Duferco S.A. in coordinates global trading and serves as the headquarters for overarching group strategy, particularly in and raw materials. Outside Europe, Duferco Steel Processing (Pty) Ltd. in represents a with the Industrial Development Corporation, specializing in and services to serve the African market. This structure underscores Duferco's emphasis on European dominance while pursuing selective international expansion.

Financial Performance

Duferco Participations Holding S.A., the group's parent company based in , publishes annual and sustainability reports that detail its consolidated financial performance across divisions. In 2024, the group achieved total s of $18.4 billion, reflecting operations in , , shipping, and sectors amid market volatility. The company's net profit rose from $385.2 million in 2022 to $450.5 million in 2023 but decreased to $152.4 million in 2024. remains the core contributor to revenues, supporting the group's overall scale through global distribution and production, though specific divisional revenue figures are not fully segmented in public reports. The division, for instance, contributed significantly via trading volumes exceeding 125 TWh of power and 30 TWh of gas. As of 2024, Duferco employed 3,303 people across 22 countries, marking a 19% increase from the previous year and underscoring workforce expansion amid growth. The annual reports also integrate sustainability metrics, highlighting achievements such as over 140 GWh of produced and an 80% share of in total consumption, aligning financial performance with ESG commitments.

Debt and Challenges

In 2015, Duferco Italia Holding's Steel Production & Distribution Division reported a net loss exceeding 14 million USD amid severe steel market volatility, characterized by ultra-low prices such as hot-rolled coil at 250 USD per metric ton FOB in December. As of fiscal year 2024, the group's net financial indebtedness stood at $903 million, up from $765 million in 2023. The Duferco group faces ongoing challenges from exposure to commodity price fluctuations, which directly affect its steel trading and production margins, including a $44.8 million loss in the steel division in 2024. Geopolitical risks disrupting international trading routes, combined with the substantial costs of initiatives—such as investments in decarbonization and renewable integration—further strain operations across divisions. Post-2015 recovery efforts centered on diversification beyond , including expansion into trading and shipping to counter the sector's inherent cyclicality. These measures have bolstered resilience, evidenced by enhanced profitability in 2023, though 2024 saw declines.

References

  1. https://www.duferco.com/contacts/
  2. https://www.duferco.com/40-years-experience/
  3. https://www.duferco.com/global-locations/
  4. https://www.duferco.com/
  5. https://www.ship2shore.it/en/founder-bruno-bolfo-hands-over-control-of-duferco-in-family-succession-deal
  6. https://www.duferco.com/steel/
  7. https://www.duferco.com/energy/
  8. https://www.duferco.com/shipping/
  9. https://dufercoenergia.com/wp-content/uploads/2025/07/DUFERCO-ASR2024.pdf
  10. https://www.dataliguresistemi.com/en/duferco-profile/
  11. https://www.duferco.co.za/index.php/company-history/
  12. https://www.duferco.com/wp-content/uploads/2022/06/Duferco-Annual-Report-2021.pdf
  13. https://dufercoenergia.com/wp-content/uploads/2023/06/Annual-report-DUFERCO2022.pdf
  14. https://www.dufercotp.com/en/history/
  15. https://www.duferco.com/wp-content/uploads/2024/05/DUFERCO-AR2023.pdf
  16. https://nlmk.com/en/media-center/news-groups/nlmk-and-duferco-to-create-a-joint-venture-acquiring-steel-production-facilities-in-europe-and-usa/
  17. https://www.reuters.com/article/markets/europe/china-steel-company-takes-controlling-stake-in-swiss-trader-duferco-idUSL6N0T83BM/
  18. https://dufercoenergia.com/en/about-us/
  19. https://www.duferco.com/innovation/
  20. https://www.dufercotp.com/en/duferco-group-40-years-of-global-and-inclusive-business/
  21. https://www.dufercotp.com/wp-content/uploads/2023/08/DTP-ANNUAL-REPORT-2022-INGLESE.pdf
  22. https://dufercoenergia.com/wp-content/uploads/2025/07/Sustainability_Report_Duferco_Energia_2024.pdf
  23. https://www.dufercotp.com/en/new-rolling-mill-sbm/
  24. https://dxt.com/
  25. https://www.duferco.com/annual-report/
  26. https://dufercoenergia.com/
  27. http://www.garocentreterminal.be/en/services/who-are-we
  28. https://dufercotm.com/
  29. https://dufercotm.com/sustainability/
  30. https://www.bloomberg.com/profile/company/0310580D:IM
  31. https://dufercoenergia.com/en/home-page/
  32. https://dith.com/dith/Duferco-Commerciale.html
  33. https://www.dufercotp.com/en/press-release-duferdofin-is-again-100-italian-owned/
  34. https://www.dnb.com/business-directory/company-profiles.duferco_sa.c7cd8090e2a5a3b350ca13578f53800a.html
  35. https://dufercoenergia.com/wp-content/uploads/2015/11/DufercoGroup_AnnualReport2016.pdf
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