(Bloomberg) -- Italian steelmaker Feralpi Group temporarily halted work at its facility in the German state of Saxony due to unfavorable energy prices that have made production unfeasible, Chairman Giuseppe Pasini said in an interview in Milan.
“At current prices Italian steelmakers can't pass on higher output costs to buyers,” Pasini said. “The market is slowing down compared with recent months.”
Temporary stoppages are possible in future if power prices spike again, he said, and the steelmaker has set up a new calculation model to align production with energy prices.
Feralpi, a family-owned company based in northern Italy, produced 1.7 million tons of steel in the first eight months of 2021, mainly for the construction industry. Feralpi recorded 2020 sales of 1.2 billion euros ($1.4 billion).
The company plans to invest 100 million euros over the next five years to produce renewable power to cover 20% of its energy requirements.
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