Germany-based Cronimet, which specializes in stainless steel scrap and ferroalloys, aims to further strengthen its presence in the region with this acquisition.
MetallPlast Recykling, which operates in the North Bohemia region of the Czech Republic, is known as a company specializing in the recycling of non-ferrous metals, ferrous scrap and stainless steel. With this move, Cronimet is making an important contribution to its sustainability strategy by increasing its recycling capacity. Jurgen Pilarsky, CEO of the company, stated that this acquisition strengthens their position in Central Europe, especially thanks to the strategic location of the plants and their operational synergies. This step adds significant value to Cronimet's recycling network in Europe.
As a major recycling company operating in more than 75 locations worldwide, Cronimet recycled 1.57 million metric tons of stainless steel in 2023. These sustainability-oriented steps by the company not only increase its business volume, but also reinforce its environmental responsibility. MetallPlast Recykling's seven facilities and fleet of vehicles enrich Cronimet's product portfolio and increase its operational flexibility.
In addition, Cronimet's cooperation with the Finnish stainless steel producer Outokumpu is seen as very important for the future of the sector. Outokumpu's acquisition of 10 percent of Cronimet's shares and the work to be carried out by the two companies on the decarbonization of stainless steel production are considered to be harbingers of the transformation in the sector.
On the other hand, developments in the stainless steel market are also remarkable. According to sources, alloy surcharges for 304L bright bar in Europe decreased in August. Prices decreased from EUR 3,047-3,380/ton in July to EUR 2,838-3,140/ton in August. This shows that fluctuations and cost pressures in the stainless steel market continue.
These acquisition and cooperation moves are expected to further consolidate Cronimet's strong position in Central Europe and strengthen its sustainability-oriented growth strategy.
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