Acerinox to invest €67m in high-performance alloys division, VDM Metals, and generate 15% more revenue

Acerinox cool

Renta 4 | The company has informed the National Securities Market Commission (CNMV) of investments in its high performance alloys division (VDM), as well as the presentation of its new excellence plan.

Investments in VDM: Acerinox has announced an investment of €67 million, including an atomiser for the production of stainless steel powders and high-performance alloys for additive manufacturing. At the same time, three remelting furnaces will be extended, and an annealing and pickling line will be upgraded, among other actions. The objective is to increase sales by 15%.

New Excellence Plan: Acerinox has designed a new excellence plan for the 2024-2026 period based on 6 pillars (Decarbonisation, Efficiency, Development of new types of products, Productivity and Automation, Quality and customer service and Purchasing). The objective of this new plan is to obtain annual savings of €100 million in EBITDA.

Assessment: We have a positive assessment of both the new investments in VDM and the new investment plan, which are part of the new strategic plan presented by Acerinox last November.

The 15% increase in sales in VDM can be estimated at around €200m (3.1% of total sales expected for the whole group in 2023) which could generate around €20m of EBITDA (2.7% of total EBITDA of the group expected for 2023). POSITIVE.

New excellence plan: potential savings of €100m represent around 13% of expected EBITDA by 2023.

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