Norway-based aluminum producer offers to buy Poland-based Alumetal.
Norway-based Norsk Hydro has announced a tender offer for the acquisition of 100 percent of the shares of Poland-based Alumetal S.A. Hydro describes that company as the second-largest producer of aluminum casting alloys in Europe.
According to Hydro, Alumetal has annual production capacity of 275,000 metric tons at its three plants in Poland and one in Hungary. Hydro describes the company as experienced in the sorting of postconsumer scrap and says Alumetal currently is “constructing a new, state-of-the-art sorting line” for the scrap it melts. Alumetal sells its products primarily within Europe and to the automotive sector, Hydro adds.
“An acquisition of Alumetal is an exciting step toward delivering on our recycling strategy,” says Eivind Kallevik, an executive vice president with Hydro. “We have been impressed by the development of the company over time, and by the quality of production, modern assets and of the competence of management and employees. We look forward to bringing Alumetal into the Hydro family and join forces to develop an even better offering of low-carbon recycled aluminum to our customers in the years to come.”
Hydro will pay an estimated $305 million for Alumetal. “With the transaction, Hydro will strengthen its recycling position in Europe and widen its product offering in the low-carbon and scrap-based foundry alloy market,” states the Norwegian company.
Completion of the purchase is subject to terms and conditions, including obtaining anti-trust-related clearance and “gaining control of a minimum of 66 percent of total shares outstanding,” Hydro says. The company says it “has concluded an agreement with two members of the Alumetal Supervisory Board and all members of the Alumetal Management Board, in total holding approximately 39 percent of the company’s shares, who have undertaken to submit subscriptions in the tender offer for all their shares at the offer price.”
Steel producer reports more than $880 million in net earnings in this year’s first quarter.
Pittsburgh-based United States Steel Corp. has reported first-quarter 2022 net earnings of $882 million, or $3.02 per diluted share. That compares with first-quarter 2021 net earnings of $91 million, or 35 cents per diluted share, representing a nearly 870 percent year-on-year increase.
“It was another quarter of records at U. S. Steel with the continued demonstration of the power of our ‘Best for All’ strategy,” says U. S. Steel President and CEO David B. Burritt. “The team’s stellar performance drove our best-ever first-quarter results, despite the challenging global dynamics that emerged throughout the quarter.”
Referring to the company’s Big River Steel electric arc furnace (EAF) mill in Arkansas and other scrap-melting EAF plants, Burritt comments, “Our minimill segment delivered 38 percent earnings before interest, taxes, depreciation and amortization (EBITDA) margins, outperforming both minimill and integrated peers.”
Looking ahead, Burritt comments, “We currently expect the second quarter to be the company’s all-time best second quarter as our balanced customer portfolio, raw materials integration and operating leverage is expected to expand adjusted EBITDA and support another quarter of strong EBITDA margin and cash generation. We believe U. S. Steel is well positioned to earn a significantly higher multiple as we demonstrate improved earnings performance, higher free cash flow, increasing direct returns to stockholders and outstanding leadership in innovation and research and development.”
The CEO says the company’s Best for All strategy remains viable. “Today’s geopolitical uncertainty and elevated raw material cost environment reinforces to customers the importance of steel that is mined, melted and made in the U.S.A. Our iron ore mines are a unique competitive advantage that cannot be easily replicated by other competitors. Additionally, we continue to progress on our sustainability goals and deliver the ‘green’ products our customers are increasingly demanding. We are also demonstrating our environmental, social and corporate governance (ESG) leadership. Earlier this year, Big River Steel became the first North American steel facility certified by [Australia-based] ResponsibleSteel. This is independent affirmation of our commitment to ESG excellence and sustainable processes and products.”
The association’s board has voted to promote Matt Seaholm and Glenn Anderson to CEO and COO, respectively.
The board of directors of the Plastics Industry Association (Plastics), Washington, has voted to appoint Matt Seaholm to the position of chief executive officer and Glenn Anderson to the position of chief operating officer.
Seaholm replaces President and CEO Tony Radoszewski, who was hired in 2019.
“We are incredibly excited to elevate both of these gentlemen to lead this organization into the future,” says Tad McGwire, chairman of the association’s board. “In making Matt our next CEO, the board is indicating how important advocacy and communications are for the plastics industry right now and the role we expect Plastics to play as a voice for its member companies. Matt’s extensive experience in this space and vision for where he wants to take this organization made him a great choice to be its next leader.”
Seaholm has served as the association’s vice president of government affairs for the past two years. Previously, he was the executive director of the American Recyclable Plastic Bag Alliance. Before joining the association, Seaholm was vice president of public affairs at the public relations firm Edelman. He is a veteran of political and policy campaigns, having worked on everything from local ordinance fights to statewide political campaigns to national issue advocacy initiatives. Seaholm has been a public voice on behalf of the plastics industry for more than five years, testifying before more than 30 legislative bodies and being interviewed by more than 100 media outlets.
“I am honored to be given this opportunity to lead the Plastics Industry Association,” he says. “While the industry has challenges before us, I firmly believe they are outnumbered by the opportunities. The innovation in materials, the investment in technology and the overall commitment to sustainability give us countless stories to tell. The plastics industry and the people who work in it are essential to society and it is an absolute privilege to be a voice for them.”
Anderson has served as the vice president of member engagement for the association since April of 2020. He has been an industry leader for nearly 40 years. Prior to joining Plastics, Anderson worked for member company Milacron LLC (now a division of Hillenbrand) for more than 30 years. During his time at Milacron, Anderson held numerous roles and responsibilities, including vice president and general manager for the injection and extrusion businesses for the Americas and, most recently, as senior vice president of global/strategic accounts working with key global customers for all Milacron branded companies, including Mold Masters and DME.
“Glenn’s promotion to COO is a reflection of his managerial experience, institutional knowledge and the broad set of responsibilities he has at Plastics,” McGwire says. “In his new role, Glenn is going to be integral to the growth of the association, the success of NPE, and a member engagement strategy that gets Plastics where it needs to be.”
“I am humbled to be given the opportunity to take on this exciting new role,” Anderson says. “Plastics is now very well-positioned to both leverage new and exciting opportunities, as well as meet the difficult challenges the plastics industry faces each and every day.”
The company says it expects to deliver double-digit earnings growth in 2022, driven by its expansion projects.
Luxembourg-based Befesa S.A. , a leading provider of hazardous waste recycling services to the steel and aluminium industries, says it has delivered its strongest quarterly results its 35-year history, with Q1 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 61.1 million euros, or $64.4 million. That figure was 25 percent greater than the company’s Q1 2021 EBITDA of 48.8 million euros, or $51.5 million, and supports a positive business outlook for the 2022 financial year, Befesa says.
The year-over-year positive earnings performance for the quarter primarily was driven by strong base metal prices and good volume performance, according to the company. This included the contribution from its U.S. zinc operations and initial volume from its first plant in China, which more than offset energy inflation and higher zinc treatment charges (TC) of $230 per metric ton. Overall plant use was at prepandemic levels of 88 percent for Steel Dust and 80 percent for Aluminium Salt Slags & SPL (spent potliner). Zinc London Metal Exchange (LME) prices averaged 3,337 euros per metric ton, or $3,518, in Q1 (up 46 percent compared with Q1 2021). Aluminum alloy prices also traded at the highest levels on record and were up 33 percent compared with Q1 2021 at 2,627 euros, or nearly $2,770, per metric ton.
During the first three months of 2022, Befesa says it continued its hedging rigor and sold more zinc volume forward, up to and including January 2025.
Befesa’s expansion in China continued to progress while managing COVID restrictions. Its first plant in Jiangsu has been in commercial production since December of last year, selling waelz oxide (WOX). The commissioning of the second plant in Henan started in January of this year, with ramp-up expected in Q2 and commercial output scheduled for the second half of the year, according to the company.
Looking ahead, Befesa says it expects to deliver double-digit earnings growth again in 2022, driven by the execution of its expansion projects and supported by the resilience of its business, diversified global footprint and cash management. The company says it expects 2022 EBITDA to range from 220 million euros and 270 million euros, or $232 million to $285 million, for 11 percent to 37 percent year-over-year growth. The company says its wide guidance range is driven by market (volume), energy and base metal price volatility.
Javier Molina, CEO of Befesa, says, “Our customers and our company face a market environment of very high volatility. Befesa fortunately entered this challenging year in the best financial and strategic shape. Our key growth initiatives in the U.S. and China are delivering. Our conservative hedging approach and long-term capital structure safeguard the proposed dividends and funding of our growth road map.”
Befesa has facilities in Germany, Spain, Sweden, France, Turkey, South Korea, China and the U.S. Through its two business units, Steel Dust and Aluminium Salt Slags recycling services, the company manages and recycles more than 2 million metric tons of residues annually.
Association’s “Circular by Design” video portrays its recycling support resources.
The Washington-based Association of Plastic Recyclers (APR) has developed and released a new, short-form video designed to illustrate its commitment to helping companies make products and packaging that are compatible with the current North American plastics recycling infrastructure. APR is using the Circular by Design trademark to brand the video.
APR says it “envisions a world with a circular economy for plastic goods; one in which companies manufacture recyclable products and consumers buy products made from recycled materials.”
It says its Circular by Design campaign, which includes the new video, has been created to inform consumer brand companies and other plastics recycling stakeholders of APR’s resources “to empower manufacturers and bolster the circular economy.”
“For years, a top priority for APR has been expanding demand for recycled content,” says APR President and CEO Steve Alexander. “The good news is that, today, demand for recycled content is at an all-time high. APR is working to remind companies that we can help them meet their sustainability goals and design their products with circularity in mind.”
The association says its Design Guide for Plastics Recyclability also is helping packaging engineers “measure each feature of a package design against industry-accepted criteria to ensure that it is truly designed for recyclability.”
Adds Alexander, “In a truly circular economy, consumer product companies are their own material suppliers. Our hope is that this video spurs more product and packaging manufacturers to use the APR Design Guide and other resources to make today’s products with tomorrow in mind.”
APR refers to itself as an international trade association representing the plastics recycling industry, with members including independent recycling companies of all sizes that process numerous resins, as well as consumer product companies, equipment manufacturers, testing laboratories, organizations and “others committed to the success of plastics recycling.”
The video can be watched on this YouTube page.