SMS Group Recorded High Level of Order Intake
With an 86 percent increase, Germany-based SMS group almost doubled its order intake to reach 3,507 million Euro in the 2021 financial year, recording the highest level in ten years.
According to the company, the reasons for this substantial rise are catch-up effects in the wake of the previous year’s slump triggered by the Covid-19 pandemic and the growing demand for decarbonization and recycling technologies.
For SMS group, the 2021 financial year closed with sales down 6.8 percent from the previous year at 2,559 million Euro. Earnings before taxes (EBT) amounted to 87 million Euro. “With this result, SMS has returned to a post-pandemic situation of profitable growth,” the firm underlined. Personnel costs in Germany have been sustainably reduced by 75 million Euro as a result of the extension of the future-oriented collective agreement and socially acceptable staff reductions. The free cash flow rose significantly to a total of 145 million Euro. Net liquidity climbed to 978 million Euro. Investments were also higher than the year before, totaling 151 million Euro.
Photo: SMS group
Decarbonization and circular economy
With the acquisition of the remaining shares of Paul Wurth in April 2021, SMS has further strengthened its position as technology partner and full-line supplier for the steel industry.
Furthermore, under the hashtag #turningmetalsgreen, SMS would not only supply solutions and systems to the steel industry but also develop technologies that “enable the recovery and reuse of nearly all types of metals”. In November 2021, a long-term, strategic partnership agreement was concluded with copper producer Aurubis, covering the development and construction of several modular recycling plants in Europe and North America. “These modern multi-metal recycling plants will recover valuable metals, such as copper, nickel, tin, zinc, platinum and various precious metals, for reuse in the value creation cycle.”
As reported, the LIB (lithium-ion battery) recycling process from Primobius has secured its first commercial success. “After the start of commercial operation of the demonstration plant in Hilchenbach in spring 2022, Mercedes-Benz was one of the first customers to decide to use this process in its operations,” SMS group gave account. “Primobius will be building its first industrial-scale plant at the Mercedes-Benz location in Kuppenheim (Baden-Württemberg), Germany.”
Positive outlook
SMS expects a sustainable and perceptible increase in incoming orders and a marked improvement in results over the next few years. The order intake in 2022 is anticipated to level out at the previous year’s figure, even because of the Russia-Ukraine war.
(Published in GLOBAL RECYCLING Magazine 3/2022, Page 20, Photo: SMS group)
Advertisement
