NACE 24.1 – Manufacture of Basic Iron and Steel and of Ferro-Alloys | Public Tenders

Definition: NACE 24.1 covers the manufacture of pig iron, steel (in ingots or other primary forms) and ferro-alloys via blast-furnace and electric-arc-furnace processes. The group is one of the fundamental industrial branches of the European metal economy.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 24.1 cover?

NACE 24.1 (Manufacture of basic iron and steel and of ferro-alloys) classifies companies that produce metallurgical base materials for the processing industry — a core area of the European industrial base.

Group 24.1 within Section C (Manufacturing) and Division 24 (Manufacture of basic metals) covers in particular:

Typical processes include the blast-furnace process (pig-iron production), the Linz-Donawitz (BOF) process and the electric-arc furnace for steel from scrap. The products serve as precursors for downstream steel and metal processing in Divisions 24 and 25.

Public tenders: steel manufacture and ferro-alloys

Steel and ferro-alloys from NACE 24.1 are sought in public procurement primarily as material supplies for construction projects, infrastructure projects and equipment procurement.

Typical contract types

• Steel supplies for construction projects: reinforcing steel, beams and sections for building and civil-engineering works of public contracting authorities
• Raw-material supplies for state enterprises: steelworks and ironworks in public ownership procure iron ore, coke and ferro-alloys
• Ferro-alloys for the defence industry: special alloys for state-owned defence companies and public research institutions
• Long-term supply framework agreements: public energy and infrastructure companies conclude framework agreements for steel supplies
• Rails and structural elements for rail infrastructure: ÖBB, DB InfraGO and other rail-infrastructure operators procure steel rail sections

Relevant CPV codes

Contracting authorities and bidders

Public contracting authorities

The primary contracting authorities for services with a NACE 24.1 link are public infrastructure operators (rail, energy), defence-procurement authorities and state research institutions. In Germany and Austria, many steel producers are subject to mixed ownership structures with public participation.

Bidders and eligibility requirements

Companies taking part in public tenders in the NACE 24.1 area typically require:

• Production evidence: certifications for steel grades under EN 10025, EN 10210 or comparable standards
• Quality management systems: ISO 9001 and factory production control under the Construction Products Regulation
• Technical capability: evidence of supply volumes, capacities and delivery reliability
• Economic capability: minimum annual turnover, credit-rating evidence

Frequently asked questions on NACE 24.1 and public tenders

What differences exist between NACE 24.1 and 24.2 in tenders? NACE 24.1 concerns primary production (crude steel, ferro-alloys), whereas NACE 24.2 covers downstream processing into pipes and pipe fittings. Tenders for steel supplies frequently involve both groups.

Are steel supplies awarded as supply or works contracts? Pure material supplies are awarded as supply contracts (threshold: EUR 221,000 for classic public contracting authorities). Where installation forms part of a construction project, the works threshold (EUR 5,538,000) applies. The classification is to be assessed in each individual case.

• NACE C – Manufacturing: parent section
• NACE 24 – Manufacture of basic metals: parent division
• NACE 24.2 – Manufacture of steel tubes, pipes and fittings: related group
• NACE 24.4 – Non-ferrous metals: non-ferrous metals and alloys

Last updated: January 2026 All information provided without warranty. For legally binding advice, please consult a law firm specialising in public procurement.