Derichebourg // 2020-2021 Universal Registration Document

1

Presentation of the Group and its activities Environmental Services business

local supply; ease of access to steel production for developing countries thanks to lower investment. However, blast furnaces generally have lower production costs per metric ton. In China, 91% of steel was produced in blast furnaces. To reduce CO 2 emissions, it decided to encourage steel production from electric mills in the coming years, by setting up its own ferrous scrap metal collection network, opening new electric steel mills and closing old blast furnaces.

As you can see in the previous graph, the share of steel from electric steel mills tends to increase from year to year, on a regular basis in countries other than China, and more recently in China. The competitive advantages of steel from electric mills are as follows: less investment; increased flexibility of use, with the ability to stop and restart production; very clear environmental benefit (fewer greenhouse gas emissions per metric ton produced with a ratio of 1 to 2.3) and energy benefit (less energy consumed per metric ton produced) advantage compared to blast furnaces, especially in countries where the nuclear share of the energy mix is high;

The share of steel from electric mills in other countries is detailed in the following graph:

In million tons

1,200

China

1,000

800

Production from recycling

600

400

200

Others

India

Japan

USA

Russia

South Korea

Germany

Turkey

Brazil

Iran

Ukraine

Mexico

Italy

Canada

France

Spain

Taïwan

Poland

0

9.2%

5.5%

55.8%

39.4%

55.5%

32.5%

49.9%

32.3%

69.2%

45.7%

32.1%

31.0%

72.5%

25.4%

70.6%

23.3%

82.7%

91.3%

84.7%

Country in which the Group delivered ferrous scrap metals in 2020/2021

Source: Worldsteel Association.

DERICHEBOURG 2020/2021 Universal Registration Document 16