Acerinox reports profitable 2024

Madrid-based stainless steel and alloys producer Acerinox reports profit after tax and noncontrolling interests of 225 million euros ($234 million) in 2024, about 1 percent lower compared with 2023.

The company, which operates melt shops in Europe and the United States, says it managed that profitability despite the fact its 2024 global revenue figure of $5.41 billion euros ($ billion) was 18 percent lower than in 2023.

“The results obtained in this market environment highlight the effectiveness of the strategic decisions adopted over recent years,” Acerinox CEO Bernardo Velázquez says. “Acerinox is successfully mitigating sector volatility while fulfilling its commitment to provide higher value-added solutions to customers.”

Among the company’s operating units is the recycled-content North American Stainless (NAS) mill complex in Ghent, Kentucky. The $244 million capacity expansion project there, announced in early 2023, is in its second year of implementation, and the company says it is on time and on budget.

The project aims to increase production capacity in Ghent by 20 percent, with new equipment designed to increase the volume of flat products, with a special focus on increasing those with higher added value, according to Acerinox.

The melt shop expansion phase in Kentucky includes an extension of the building structure that has been delivered and is pending installation.

In January, Kentucky Gov. Andy Beshear joined Acerinox executives in Madrid in a meeting the firm says “highlighted the successful partnership between Kentucky and Acerinox.”

Acerinox further increased its footprint in the U.S. last year with NAS’ acquisition of Kokomo, Indiana-based specialty alloys producer Haynes International. Velázquez refers to the transaction as “a key strategic step for establishing a solid platform for stainless steel and high-performance alloys in the United States.”

“The integration of Haynes will generate synergies for the group in terms of expenses, sales efficiency and process optimization,” Acerinox says, which also plans to invest around $200 million during the next four years at Haynes facilities in the U.S. to increase capacity and develop synergies.

At the same time it has been investing in the U.S., Acerinox has divested itself from its former Bahru Stainless mill in Malaysia.

Acerinox called that “a difficult but necessary decision that responded to the overproduction [of stainless steel] in China and Indonesia and its impact on prices and profitability in Southeast Asia.”

In Europe, the firm is in the midst of implementing a new organizational and production model at the Acerinox Europa factory, located in Campo de Gibraltar, in Cadiz, Spain. That plan follows up on an agreement reached between Acerinox and its Spanish workforce after a five-month strike last year.

This year, Acerinox expects a recovery in stainless steel activity starting in March.

“Distributors’ inventories are below the average of recent years,” notes the firm.

Acerinox says the specialty or high-performance alloys market remains stable and its order book remains strong, despite what it calls the current weakness of the aerospace sector.

“We expect that the recent measures adopted by the U.S. administration will favor demand in this market,” the company adds.