20 July, 2022Fagor Arrasate has kicked off 2022 at an excellent intake pace in all sectors in which it operates, having managed to secure 26 new projects worth 102 million euros in the first quarter.
According to Unai López Moñux, CEO of Fagor Arrasate, “theyear 2022 started out with a better outlook than 2021, although not devoid of uncertainties due to the increase in risks for global recovery, which looks to be weaker than hoped and with significant differences from country to country”.
Thus, the significant drop in certain economies caused by the profound impact of the restrictions, depending on their production fabric, may be worsened by the foreseeable impact of high inflation that will jeopardise the recovery of some economies if it lasts beyond a short-term post-restriction episode, due to its impact on the cost of raw materials and energy, and the knock-on effect on salaries.
In any event, “at Fagor Arrasate we are confident that the change in trend that commenced in 2021 and the positive performance of the first quarter of 2022 will be consolidated. Hence, for 2022 we expect to reach a new incoming order figure of over 190 million euros, which is 20% higher than 2021”, company CEO, Unai López Moñux, concluded.
After a 2020 in which the pandemic heavily impacted investment activity in the sectors where Fagor Arrasate operates, slowing down contract adjudication processes, particularly in the automotive sector, the Gipuzkoa-based manufacturer finished out 2021 with hopeful figures, recording incoming orders worth 160 million euros - 70% above 2020 and 8.5% above the annual forecast - practically returning to pre-pandemic levels.
The sales figure for 2021 was 126 million euros, still affected by the extraordinarily low level of incoming orders in 2020, with an EBITDA of 8.2 million euros.
By region, the NAFTA geographical region stood out in 2021, accounting for a third of the incoming orders. Also notable was trade with Turkey, where a significant amount of production activity by manufacturers and suppliers in the automotive industry is concentrated, and where Fagor Arrasate has secured significant contracts, consolidating its presence in the country. On the other end of the scale, the German market has shown a low level of investments.
By area of activity, the performance of the electrical appliances business unit has performed very positively, promoted by significant demand in the sector worldwide, as a result of COVID-19. Performance in this business unit has been excellent, recovering incoming order levels with respect to 2020 and exceeding the forecasts of the 2021 Management Plan and the figures for projects secured in the pre-pandemic years.
In the automotive business unit, investment initiatives are starting back up, mainly driven by the electrification of the sector, which calls for new needs (e.g. light materials) and applications (e.g. batteries and derivatives), where Fagor Arrasate offers innovative/cutting-edge solutions. In this regard, the installations for processing and forming composites already account for almost 10% of the company's new secured orders.
With regard to the metalworking business unit, the rise in prices of raw materials has benefited this area in 2021, which has prompted its clients in the steel and aluminium value chain to reactivate their appetite for investment, although still remaining far from pre-pandemic levels.
