Sidenor 2020 Corporate Report

We have started an Innovation Project with the aim to pursue our diversification strategy both inside and outside the steel business. In the activity related to steel, the long-term strategy is to diversify outside the car sector. We have already been following this path for five years and continue to advance with new products, approvals and, above all, changes in our usual way of working. The sectors in which we are already present include energy generation (both wind energy and oil&gas), railway, mining, defence, tool machinery, etc. In order to access these sectors, we had to perform relevant investments, such as the manufacturing of new continuous casting round bloom formats: one of 410 millimetres and one of 525 millimetres in diameter. In this respect, the support of our Sidenor R&D centre, which developed ad hoc steel qualities to cover and even exceed new needs, has been instrumental. We are currently analysing further markets for Sidenor, such as the maritime sector, the manufacture of lifts, forklift trucks, rail manufacturers, etc. We are studying the development of new products such as rolled round bars that are of higher quality than the current range, new continuous casting blooms and more demanding steel qualities, both in special steel and stainless as well as tool steel. In addition, we have launched a corporate diversification, including alliance and purchase processes with other companies searching for synergies with our business. Visible results 31 2020 Stainless steel Wind tower bearings. Railway wheels and axles. Approvals Progressive adaptation and awareness raising towards the decarbonisation required in the car sector, promoting investments and steels which will help us lead the sector by means of a sustainable environmental policy. Implementation of our products in new developments of both hybrid and pure electric vehicles, obtaining new approvals in long-term projects. Inclusion of martensitic stainless steels for special applications in the production range. Strong increase in the sales of semi-finished products (300%). Access to the non-auto sectors, such as railway, renewable energies and mining. Launching of new approvals for new products, multipliers, railway wheels, fasteners for wind towers and bearings. Increase in the range of products, building on the advantages of the 525 mm diameter round bloom rolling. Diversification We pursue our diversification strategy