ELVALHALCOR – Investments of 100 million euros – Utilizes mega trends

ELVALHALCOR continues its dynamic development through investments that will increase its production capacity and will strengthen the logistics facilities.

The new investment plan of 100 million euros, which includes the new cold roller and the new paint line, will increase the production capacity to 520 thousand tons, with the consequence that the needs for logistics will multiply. The additional quantities that will be produced have already been committed to by customers, as was mentioned by the company executives at the press event, during which they informed the media representatives about the details of ELVALHALCOR, as well as about the terms of the issuance of the company’s bond loan.

It should be noted that until recently the production capacity of the company was at 300 thousand tons. The installation of the new hot roller last year increased the capacity to 360 thousand tons.

The increased needs for storage and distribution of the company’s products will be covered through new investments in real estate. Specifically, the 30 million euros of funds that will be raised from the bond will be directed to the purchase of land with logistics.

The large scale trends in aluminum and copper

International trends stemming from tackling the climate crisis, energy efficiency, e-mobility and the circular economy in the context of sustainable development and the transition of the economy to a more environmentally friendly model, favor the aluminum and copper industries, he noted. presentation of the company by the Deputy General Manager Mr. Nikos Karabateas.

A key advantage of aluminum and copper is that they can be recycled indefinitely without loss. In contrast, other materials, such as plastic, degrade in quality with recycling.

The turnover is over 2 billion euros

According to Spyros Kokkolis, financial director of the company, the turnover is expected to exceed 2 billion euros. Regarding the increases in metal prices, he stressed that they are treated by a “pass through” model, ie they are passed on to customers. On the contrary, the rise in energy prices is creating turmoil in all companies internationally, although the growth of ELVALHALCOR has not stopped.

ELVALHALCOR’s contribution to the Greek economy

As the general manager of the Copper and Alloy Extrusion Department of ELVALHALCOR, Panos Lolos, characteristically said “the company is a national champion”.

According to a study by the Foundation for Economic and Industrial Research (IOBE), the annual production value of the company in Greece in the three years 2018-2020 reached 1.5 billion euros.

During the same period, the group’s exports accounted for 7.5% of the country’s industrial exports. Specifically, they amounted to 1.38 billion euros in 2020 from 1.40 billion a year ago. In 2018, the value of the company’s exports exceeded 1.6 billion euros. The export value of the company is equal to the export value of the Electronics and optics sector.

The group’s investments correspond to 5.6% of the investments in the manufacturing sector (estimated at 336 million euros in the three years 2018-2020) excluding oil refining products.

If ElvalHalcor was a sector of the Greek economy, it would be in the fifth position of the sectors based on the value of product exports in 2020 and in the fourth position of the manufacturing sectors (based on the value of investments in material goods in the three years 2018-2020).

The added value produced directly by the company annually exceeds 200 million euros

In addition, based on the same study, the company, which has a strong production base with 17 factories in 4 countries, mobilizes significant economic activity throughout the Greek economy. The total impact of its activity on GDP exceeds 700 million euros per year (0.4% of the country’s GDP), while it supports a total of about 14,000 jobs in Greece, in terms of full-time equivalents (0.3% of total employment in the country).

Each job in the company supports another 5 jobs in the whole economy (average 2018-2020).

The bond opens today

The public offer for the bond issue of ELVALHALCOR with a target of 250 million euros (the minimum is 200 million), starts today, November 10 and will end on Friday, November 12.

The bond will be issued in Greece with cash payment and the listing for trading in the category of Fixed Income Securities of the Regulated Market of the Athens Stock Exchange. The bonds will be made available for coverage through a public offering within the Greek territory to the entire investing public, ie to special and private investors.

The sale price set at 1,000 euros per bond, with a minimum participation of 1,000 euros. The yield range was set between 2.40% to 2.90%. The outcome of the public offering will be announced on November 16, 2021.

The use of the funds raised

In detail, after deducting the issuance costs that will reach 6 million euros, most of the funds of the 7-year bond loan, ie 154 million euros, will be available, within 45 days from the date of issue, to reduce short-term borrowing. namely 1) 43 million to EUROBANK for the repayment of mutual accounts amounting to 46 million euros, 2) an amount of 56 million to ALPHA BANK for the repayment of mutual accounts, a balance of 58 million euros and 3) an amount of 55 million euros to National for the repayment of mutual accounts of outstanding balance of 56 million euros.

An amount of 60 million euros will be used to cover working capital needs which will not be used to pay any amount to its shareholders in the form of dividend or interim dividend or return of capital or any other distribution to shareholders (in cash or in kind).

The remaining 30 million euros are intended for new investments in real estate with the aim of expanding the company’s activities. In particular, the company will use this amount for the payment of a price (including the relevant expenses and taxes) for the purchase of a plot of land and storage space in Inofyta.

It is already in negotiations for the purchase of these properties, having already signed a non-binding memorandum of understanding. The management estimates that the achievement of this investment will be completed by June 30, 2022, as the basic terms of the transaction have been agreed upon and technical and legal control is underway.