Bruno Bolfo, president of the holding company that controls steelmaker Duferco, says the war in Ukraine will have a significant impact on the steel business.
The executive notes that Duferco is reorganizing, taking into account that business with Russia is no longer possible, and supplies from Ukraine will continue to be disrupted by the war.
“We expect the impact on our operations to be a $20-25 million margin loss on steel and raw materials. We can recover this lost profit from other parts of the business, but it won't be easy," Bolfo said in an interview with Italo-Swiss TV.
“I have never seen a situation comparable to what we are seeing now, having been in business since 1979,” he added. “What is happening could lead to the end of globalization and exacerbate the division of the world into blocks.”
Duferco is one of the largest steel and raw materials traders in the world, but its holding is also active in other activities such as energy. In 2020, the holding group made a profit of over $110 million.
The war in Ukraine will cost Duferco $ 20-25 million
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