Stainless steel recycler ELG could be sold

Besides scrap and superalloys ELG also trades in
primary raw materials for the stainless steel industry
18.03.2020 − 

The conglomerate Franz Haniel & Cie is weighing the disposal of its stainless steel recycling division. As part of the strategic reorientation of the family-owned investment holding company, Haniel is to analyse the strategic options for ELG together with the stainless steel recycler's management. These would also include "possible sales scenarios", the company said on Tuesday.

 Franz Haniel, whose portfolio includes ELG, the hygiene and workwear solutions supplier CWS and the B2B mail order company Takkt, says it wants to create a modern, entrepreneurial culture. Employing a new, joint management approach, the "Haniel Operating Way", the group wants to create "operating pillars" to enable it to further develop its portfolio. During the realignment, the corporate portfolio is to be reviewed, evaluated and adapted to current market conditions.

Most recent financial reports show ELG in the red

With over 50 sites on five continents, the stainless steel recycler ELG headquartered in Duisburg, Germany, is currently the largest revenue generator in Haniel's corporate portfolio. In 2018, ELG Haniel GmbH, which has recently expanded more strongly in the superalloys business segment, generated sales of €1.81bn and booked an operating profit of €33m.

For 2019, however, there were already signs of a significant decline in sales and earnings in the first financial half. In the first six months of 2019, the recycler's revenue slumped by 16 per cent to €833m. The pre-tax result was a loss of €7m. Haniel's annual financial report is usually published in April.

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