Alcomet JSC - Shoumen - Short Company profile

The largest companies in the "Metallurgy" sector: Growth is slowing In the "Metallurgy" sector, in 2022, four companies will surpass the billion barrier compared to two the previous year. The leader "Aurubis Bulgaria", which for the third year in a row is the largest company in the country, reached BGN 8.2 billion, providing more than half of the total turnover of the top 10. However, the growth of enterprises slowed down to 24% from 36% in 2021. Nine of the companies are making a profit, and only "Promet Steel", which is owned by Metinvest and is highly dependent on the import of raw materials from Ukraine, reports a loss. The revenues of "Aurubis Bulgaria", which is part of the German group Aurubis and is the owner of the mining plant near Pirdop and Zlatitsa, increased by 24%. The main reason for this is that in 2022 the plant worked without a single day of interruption, which ensured a higher volume of production. Higher prices for sulfuric acid, which the company produces as a by-product, also helped the growth. However, preliminary data indicates that the results in 2023 will be lower, as there were shutdowns for scheduled repairs. Net profit in 2022 also grew significantly, bringing the company over 6% profitability. The enterprise processes copper concentrates, with the final products being cathodes (high-purity copper) and anodes, which are exported for further processing at other plants of the group. However, a ˆ120 million investment project is currently underway to expand the refinery, so that in the second half of 2026 the company will be able to process all of its anodes into pure copper on site. The producer of copper products "Sofia Med", which is part of Elvalhalcor of the Greek group Viohalco, also noted higher revenues and profits. The company reports good demand and favorable prices in 2022. A few years ago, the enterprise in Sofia shifted its focus from purely architectural elements to products for the industry - automotive, electronics, mechanical engineering, energy, etc., and began to produce special alloys, which expanded its markets. The revenues of both steel companies in the country are over a billion. "Steel Industry" in Pernik increased its turnover by 31%, although the growth was half of that of the previous year. The profit also decreases. Overall, demand has been good because of the post-pandemic recovery, which has also helped prices. However, the sector is also affected by many other factors - from energy prices and carbon quotas to global trade policies. The war in Ukraine has a direct effect on the performance of "Promet Style" in the Burgas village of Debelt. The company is part of the Ukrainian group Metinvest and depends on it for the supply of its raw materials. Transportation difficulties since the Russian invasion have reduced production by about 20%, and higher steel prices alone have seen revenue rise by about 21%. The company is the only one in the top 10 to report a loss for 2022. Higher zinc prices and stable lead levels have helped the Plovdiv-based KCM plant to increase its revenue by nearly 27% in 2022 while maintaining production volumes. The exchange rate of the dollar against the leva also had a positive effect. In 2023, however, demand on a global scale declined, which is likely to weigh on results. Weaker demand is also reported by the Shumen producer of aluminum products "Alcomet". In 2022, the company is increasing its revenue by 37%, but the growth is due to higher aluminum prices, while production volumes are decreasing. Shrinking demand from key sectors such as automotive, engineering and construction has limited sales to industry, while demand for household film has also been weaker due to reduced purchasing power. All these factors have continued to influence in 2023. There is a slight drop in revenues at Plovdiv-based Huss, which, in addition to the production of metal products such as rebar blanks and welded meshes, is also engaged in trade in metals. The company's profit is also shrinking. However, the Shumen-based "Sark Bulgaria" recorded a significant increase in revenue - 64%, and the profit tripled. The company has been operating in the country since 2019, producing electrolytic copper and wires. It is owned by the Turkish Sarkuysan. A double-digit increase (37%) was recorded by the Sofia-based "Etem Gestamp Aluminum Extrusions", which was established in 2019 as a joint venture between "Etem Bulgaria" (part of the Greek Viohalco) and the Spanish Gestamp for the production of extruded profiles. In parallel, a company for the processing of profiles for the automotive industry was registered - the machine-building "Gestamp Etem Automotive Bulgaria". In 2022, the owners started an investment of 60 million euros to expand the total production capacity. With the biggest growth in the top 10 - 65%, is the Plovdiv-based "Bulmint One", which produces investment gold and silver in the form of bars, coins and blanks.