In 2023, Sidenor demonstrated its resilience in a global context of uncertainty; it was no easy year, as it was characterized by a drop in orders and the insufficient recovery of some of its final sectors: wind power, oil & gas, heavy vehicles and machine tools.
Despite this situation, the steel company achieved good results, which translated into 938 million euros of turnover in 2023, with an EBITDA of €61M and a profit of €23M.
This data is extracted from the 2023 Sustainability Report – Non-financial Information Statement that the company has published and which highlights Sidenor’s most significant milestones.
Specifically, this report includes the company’s commitment to innovation, sustainability, care for the environment, respect for the local community and the agents of its value chain, circular economy and the promotion of talent, these being the main axes of this interactive annual report.
Innovation and sustainability
Environment
Society
Governance
José Antonio Jainaga
Sidenor Chairman
Chairman’s letter
We reached the end of a year – 2023 – in which economic activity was beginning to show signs of weakening. In our sector, these signs began to be especially visible in the second part of the year. However, we closed the financial year with – taking into account this general context – good economic results.
In 2024, Sidenor will continue to advance at maximum speed on the path towards decarbonization. We were the first company in Spain to sign a State- guaranteed renewable PPA, through CESCE (Spanish Export Credit Agency). In 2023 as well, we invested, in collaboration with the Basque agency EVE, in the acquisition of eight photovoltaic parks in Catalonia that guarantee green origin and price stability in a significant part of our electrical supply.
Thus, in 2025, all the electrical energy consumed by Sidenor will be of a renewable origin. In addition, we aspire to be the first special steel producer in Europe to achieve zero net CO2 emissions. We are driven to reach this objective by our commitment to society, as well as the strategic will to turn this challenge into a decisive competitive advantage.
The 2024 financial year, following the trend of recent years, will undoubtedly be characterised by great uncertainty at all levels: global geopolitical tensions, instability in the Spanish political scenario, high interest rates and the general evolution of the economy have turned the art of forecasting into an extraordinarily complicated discipline.
In this sense, we believe that flexibility and the ability to adapt to this scenario of uncertainty are going to be top-priority qualities in the relationship with our customers, especially with regard to production and service capacity. We think that the best actors in this field will be able to conquer positions in the market despite the adverse context; we want to be one of those winning companies and, for this purpose, our entire organization is working to improve our capacity to react and adapt to the market.
Sidenor basically depends on its sales to the European automobile market. Here as well, the uncertainty is extreme: on the one hand, the demand for vehicles is affected by an uncertain general economic evolution and, on the other, the challenges faced by this industry (energy transition, development of the electric car…) make it very difficult to predict the evolution of automobile demand, even in the short term.
However, we are optimistic about this new year’s results. Without a doubt, the geographical and product diversification of our sales, with a clearly export-oriented character – as in most Basque companies – will be a factor that will decisively play in our favor. Furthermore, our commitment to ESG and, especially, the steps that we have taken in the decarbonization of our processes already constitute a clear advantage over the majority of our competitors, which will translate into an increase in our market share in Europe and our profitability.
We believe that complicated times, far from being a source of difficulties, will help us further improve the image we project towards our customers.
Constant innovation and sustainability as a pillar
Sidenor is moving towards sustained future growth. Its commitment to excellence drives the company to make significant investments in innovation, one of the fundamental pillars of its activity.
Thanks to its R&D center, one of the most prominent in the steel sector in Europe, it carries out the constant development of new technologies and products that help it satisfy the needs of its customers.
In line with its vision, Sidenor leads the transformation towards industry 4.0, modernizing and digitalizing its production processes to achieve greater efficiency, safety and quality.
Regarding sustainability, the company supports projects and initiatives that promote responsible practices and that add value to the society, working on sustainability transversally throughout its value chain, processes and operations, focusing on people, environment, society, ethics and business transparency.
Thus, in order to minimize the resources used and reduce emissions, Sidenor carries out its activity in accordance with the principles of the circular economy. To this end, it continually seeks intelligent alternatives for the reduction, reuse and valorization of the waste generated during steel production.
This philosophy allows the steel company to maintain responsible social behavior with respect to investors, suppliers, customers, society and the communities in which it carries out its activities.
Environment – on the path towards decarbonization
Environmental management at Sidenor is comprehensive and is applied transversally to all its operations and teams, in order to achieve continuous improvement in the performance of its work that allows the company to minimize the environmental impacts of all its activities and products.
Sidenor has a completely decentralized Management System that cuts across the entire organization, which is aligned with ISO 14001 and ISO 50001 standards and which includes the analysis of all its industrial activities.
From the perspective of Steel Life Cycle Analysis, it applies environmental criteria in all production phases, from design, supplier selection and optimization of raw materials to the reduction of energy consumption, waste management and improvement of processes, leading to the creation, in 2023, of its new range of neutral steels and sustainable steels.
Likewise, in the field of reducing greenhouse gas emissions and fighting climate change, in 2023 Sidenor has taken an important step in contributing to the objectives of the Paris Agreement by committing to the SBT (Science Based Targets), a path to decarbonize its operations and be a company with net zero emissions.
Society – commitment to the people
People are Sidenor’s main asset. With a staff of 1,840 professionals, the company, committed to promoting six of the Sustainable Development Goals promoted by the UN, focuses on the prevention of occupational risks, constantly reviewing and updating both the centers’ security systems as the activities that are carried out, which allows you to ensure the integrity and health of the team.
Furthermore, it is strongly committed to the territories in which it operates. Through job creation and collaboration with local suppliers, Sidenor contributes to the wealth of the places where it operates, thus strengthening its position as a key partner in their development.
Ethical governance
Sidenor prioritizes quality, safety and integrity in all its activities. This commitment is supported by proactive corporate governance that bases its decision-making on sustainability and long-term criteria.
In short, Sidenor continues to build, for another year, and in collaboration with all the agents in its value chain, a path focused on achieving business excellence that allows it to continue growing sustainably, betting on people, talent and ensuring a better future.