Befesa reports organizational changes to capture double-digit sustainable global growth opportunities

On 12^th July 2022, the Board of Directors of Befesa S.A. appointed Javier Molina, the present Chief Executive, as the Executive Chairperson of Befesa, while the working Vice President of the Steel Dust Recycling Business, Asier Zarraonandia is promoted as the CEO of Befesa. The current Chairman of the Board has been appointed as the Lead Independent Director and abides as Chairman of the Nomination and Remuneration Committee. However, the company has reported that all the changes are with immediate effect.

In his capacity as chairman of the board of directors of Befesa and executive chairman, Javier Molina will represent Befesa to regulators, authorities, and shareholders. Befesa's corporate strategy will be implemented by him, covering growth projects, the Sustainable Global Growth Plan (SGGP), as well as sustainability initiatives, including carbon reduction plans.

As a group, Befesa aims to become the global leader in the management and recycling of hazardous residues in the aluminium and steel industries, as well as contributing to a more sustainable world.

In his role as CEO of Befesa, Asier Zarraonandia will report to the Executive Chair. Asier developed and managed the Steel Dust Recycling Business which represents around 80% of Befesa's EBITDA. Among his responsibilities will be the day-to-day management of all business units within Befesa, as well as the supply chain, commercial, and production operations. Moreover, he will oversee the execution of various growth projects within the company. As CFO of Befesa, Wolf Lehmann will continue to report to the Chair and maintain his role.

The newly appointed Board of Directors will lead Befesa over the next four years, including two new members Natalia Latorre and José Dominguez Abascal. Each brings extensive experience in energy transition, and environmental, social, and technology development, three areas of increasing importance to Befesa in the coming years. Six independent directors and three executive directors remain on the new Board.

The Befesa board has also created a sustainability committee, which will reinforce the company’s commitment to sustainability as a crucial player in the circular economy and will analyse the progress against Befesa's sustainability plans every quarter.

The aluminium industry’s navigation towards decarbonisation and the rapid rise of the production of electric vehicles are propelling the demand surge for secondary aluminium and salt slags recycling in Europe, where Befesa is a major role player. The expansion of Befesa's recycling capabilities contributes to the transition to a low-carbon economy by enabling the decarbonisation of the steel and aluminium industries.

In this context, Befesa has publicized that it is on the verge of establishing its new five-year ‘Sustainable Global Growth Plan’. Now, in regards to this plan, Befesa targets to infuse around €500 million in growth projects to capture the opportunities that decarbonisation and the growing electric vehicle market are generating in the steel and aluminium industries. This will empower the company to attain double-digit growth rates over the next five years.

Javier Molina, the newly appointed Executive Chair of Befesa stated: "I am very excited about this new chapter for Befesa. Asier has been managing Befesa's main business for the past 15 years very successfully and is my natural successor. Despite the current uncertainty in the global economy, we have a solid business plan based on strong fundamentals. We believe that decarbonisation and the rise of electric vehicles will remain medium and long-term growth drivers and we are in a privileged position to be able to seize these opportunities in the markets that we know best.”

“Our new Sustainable Global Growth Plan targets around €500m in investments globally - balanced across new markets such as China and more mature markets such as Europe and North America. This will enable Befesa to continue its accelerated expansion, targeting double-digit growth over the next five years."