Sidenor 2022 Sustainability Report

19 Sidenor finalised its investments in the Basauri plant, where the Company carried out a technological renovation of premises. For this purpose, a total amount of 131 million euros was invested in two phases. The first one, amounting to 41 million euros, took place in 2017, while the second one, which is now finalized, meant an investment of 90 million euros. Thanks to this technological renovation, we are at the forefront of the special steel sector in Europe. The new premises enable us to take a decisive step, integrating the best technological equipment available and thus meeting the highest market quality requirements. Specifically, the second investment phase included the launch of a new rolling mill, in addition to building a new storage area for semi-products, a new bar straightening, control and wrapping line, two new heat treatment furnaces and to extending the metallurgy lab. All these new elements were added together with the corresponding auxiliary installations such as overhead cranes, transport platforms, water, air and gas infrastructures, as well as processing centers, among others. The new rolling mill thus shows an increased capacity (up to 500,000 tons yearly), and the bar manufacturing spectrum is extended. This major investment will also improve product and process quality, leading to an increased competitiveness and efficiency. These undertakings confirm our leadership in the production of special steel bars that meet the highest internal and dimensional surface quality requirements, which will, in addition, enable us to access markets where we had not been present so far. In spite of the serious health situation and economic crisis which started in 2020 around the world, Sidenor has decided to further bet on technological renovation as well as to invest as planned for this purpose. Thanks to such an economic effort made by the Company, we are taking the lead in the sector at European level. The overall aim is to ensure Sidenor’s competitiveness and, thus, its future. For the Company, this investment action is a Country project, with a wide potential to boost the industrial fabric. For this reason, various companies in the surrounding area have taken part in its execution. The project also meets the overall guidance of the European Union for the near future, with a special focus on the development of digitization and intelligent manufacturing, apart from adding equipment which will notably reduce energy consumption and CO 2 emissions. Technological renovation