Sidenor Corporate Report 2019

25 WE ARE BOOSTING OUR NEW DIVERSIFICATION STRATEGY We have invested seven million euros in the launching of a new installation at our plant in Basauri, in order to diversify our production and thus access renewable energy markets as well as sectors such as railway and oil&gas. We intend to encourage the non-auto sector to tend to increase its participation in sales up to 50%, thus reducing our dependency on the automotive sector, for which 67% of our production is currently intended, and diversifying risks. The investment aims at manufacturing a new product, the continuous casting round bloom, which includes the purchase of new ingot moulds, cooling systems, a dynamic liquid steel solidification simulator, end-of-line electromagnetic stirrers and new cooling techniques in order to “optimise product quality levels”. In these new installations, we are manufacturing two new round bloom formats: one of 410 millimetres and one of 525 millimetres in diameter, and we intend to manufacture 20,000 tonnes of this new product for direct sale in 2020. Visible results 2019 Stainless steel We obtained the approval for the direct supply of the rolling bearing manufacturer Schaeffler. Approval A year of consolidation of our position in the automotive market, with the establishment of important projects with reference European customers such as PSA Group, Hirschvogel, Linamar, CIE… Consolidation in the Scandinavian market after one year of continuous expansion of our position. Expansion of the stainless steel production range, with the gradual introduction of martensitic steels. We boosted our sales diversification strategy. Strong commercial action in significant foundries which consume semi-finished products (ingots, round and rectangular bloom). Approvals obtained for the supply of new markets such as railway and mining. Access to new markets, with the presence of new agents in South America, North America and Eastern Europe. Diversification