Steel & metals

At the moment, the steel market is being dealt a new hand. Mergers and acquisitions are practically a daily occurrence, and long-established steel companies are now obliged to deal with growing competition from brand new players. Together with our clients, we develop diversification and market entry strategies. We also provide M&A support and find potential partners for strategic alliances all over the world, from Eastern Europe, to Latin America or Asia.

Intense competition has set off a wave of consolidation

For the fourth year in a row, the steel producing industry is showing high growth rates and profits, reflecting the steady worldwide demand for steel. Following the efficiency improvement and cost cutting programs of the 1990s, growth-related topics have made their way to the top of the agenda. At the same time, intense competition has set off a wave of consolidation that is permanently changing the industry.

To secure a leading position in the worldwide competition, steel companies can either merge or seek other types of alliances. In so doing, they can benefit from scale effects and the resulting lower costs. Another competitive advantage is upstream vertical integration: steel producers are increasingly buying iron and coal mines to secure cost effective and easy access to scarce natural resources.

Steel producers should take advantage of ongoing upward trends in the steel cycle to ensure long-term success. Companies that fail to do so will not be able to hold their own once demand decreases.

At the moment, the steel market is being dealt a new hand. Mergers and acquisitions are practically a daily occurrence, and long-established steel companies are now obliged to deal with growing competition from brand new players.

With its team of seasoned experts, Roland Berger Strategy Consultants supports international steel companies in developing strategies for the future. Our project teams are made up of industry experts and strategy, operational excellence or cost management specialists. Thanks to our worldwide network of experts, we develop global solutions without losing sight of local particularities.

Together with our clients, we develop diversification and market entry strategies. We also provide M&A support and find potential partners for strategic alliances all over the world, from Eastern Europe, to Latin America or Asia.

Developing a diversification strategy

An international steel company was seeking ways to better deal with strong market fluctuation in its core business. Cooperating closely with the management board, we developed a suitable diversification strategy and identified market segments close to the core business. This enabled the company to exploit synergies and scale effects. The board approved our strategy and implementation can begin without further ado.

Optimizing a production network

A leading global producer of long steel products was struggling with high manufacturing costs, long production cycles and capacity bottlenecks. First, our team identified weaknesses in the production network and elaborated a detailed technical blueprint that showed the required technical improvements. Next, we calculated the positive financial effects of these actions and laid them out in a business plan. Within two years, the company had implemented all our recommendations in full.

Developing a market entry strategy

One of the world's leading producers of quality flat steel wanted to expand into the pipe segment. We analyzed the market in detail for our client and developed a promising market entry strategy. Finally, we elaborated a detailed technical concept for a production facility that aimed to be integrated seamlessly with the existing production sites. To this end, we defined the facility layout, planned future material flows and created a detailed business plan. The company is now in the process of implementing our concept.