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Current press releases

We post all current press releases here so that you are always up to date.


CRONIMET expands cooperation with Finnish stainless steel producer Outokumpu

Karlsruhe, November 7, 2023

  • Outokumpu acquires 10 percent minority stake in CRONIMET North-East GmbH

  • Strategic partnership to contribute to the decarbonization of stainless steel production

  • CRONIMET retains full operative control over North-East GmbH 

 

CRONIMET, world’s market leader in stainless steel recycling, and Outokumpu, the world's leading supplier of sustainable stainless steel, are further expanding their strategic partnership. To this end, the Finnish stainless steel producer is acquiring a 10 percent stake in CRONIMET North-East GmbH, an intermediate holding company which directly and indirectly holds the shares in CRONIMET's northeastern European companies.

Outokumpu and CRONIMET are working together to optimize the raw material cycle: regionally processed scrap for the production and consumption of stainless steel in Europe.

“This partnership is another step towards achieving the sustainable development goals: a low carbon footprint in the production of stainless steel with regional scrap and through shorter transport routes to Outokumpu’s stainless steel mills,” says Jürgen Pilarsky, CEO of CRONIMET Holding GmbH.

In addition to supplying Outokumpu's European stainless steel mills with stainless steel scrap from CRONIMET's sites in northeastern Europe, the two companies have also agreed in this partnership to work together on innovation and research. Together they intend to work on technologies that contribute to the decarbonization of the stainless steel industry. The partnership also focuses on reducing costs through better planning on both sides and reducing waste within the supply chain.

"We are pleased to partner with CRONIMET as we share a common goal in terms of regional development - accelerating the circular economy in the Northeast European market area while paying attention to sustainability and CO2 reduction during transportation and stainless steel production," expressed Marc-Simon Schaar, Chief Procurement Officer at Outokumpu.

As a shareholder, Outokumpu acts as a strategic partner in CRONIMET's North-East Europe business, expanding the existing successful cooperation. CRONIMET retains full operational control over the participating companies of CRONIMET North-East GmbH. An expansion of the shareholding in CRONIMET North-East or an investment in other companies of the CRONIMET Group is not planned.

The completion of the transaction is subject to customary closing conditions and regulatory approvals by the competition authorities.

 

About the CRONIMET Holding Group

The CRONIMET Holding Group, headquartered in Karlsruhe, Germany, is a global specialist for stainless steel scrap and ferroalloys. The focus here is on returning metallic raw materials to the materials cycle through recycling and processing, thus contributing to the securing of raw materials and raw material efficiency. For more than four decades, the company has been supplying raw materials to the stainless steel producing industry. The CRONIMET Holding Group was founded in 1980 and is now present worldwide with more than 1500 employees at about 70 locations.

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CRONIMET expands its machine park with the first electrically powered material handler from Solmec

Karlsruhe, September 27, 2023

  • CRONIMET is continuously working on the electrification of its machine park

  • CRONIMET relies on robust and reliable technology from Italy

The Karlsruhe-based stainless steel specialist CRONIMET Ferroleg. GmbH continues to work on converting its machinery to environmentally friendly machines. This week, the first material handler of the Italian company Solmec, type EXP 5020ZE, has been handed over.

CRONIMET already committed last year to the net zero target by 2050 and also joined the Science Based Targets initiative (SBTi) in 2023. An important building block on the way to this goal is the changeover of the machine fleet to environmentally friendly, electrically powered material handlers. Currently, CRONIMET Ferroleg. GmbH in Karlsruhe has nine material handlers in operation, which are used to return around 140,000 tons of stainless steel scrap and other alloyed scrap to the raw materials cycle every year. The Solmec EXP 5020ZE is the second fully electrically operating excavator in Karlsruhe. It can be used in sorting mode for up to ten hours before its battery needs to be recharged.

"I am pleased that we are driving forward the electrification of the machine fleet with the new material handler at the site of the largest subsidiary of the CRONIMET Group. We are currently planning to replace the old diesel-powered material handlers with new, environmentally friendly models at all European sites of the CRONIMET Group. I am very happy to have Team Technics at my side as a competence center for the procurement of the machines," says Marijo Zeljko, CEO of the European locations of the CRONIMET Group.

"With the Solmec material handler, we are relying on innovative and robust technology. It can be used cable-free, completely flexible, and is characterized by high reliability," says Marco Merico, who is responsible in Team Technics for technical consulting in the procurement of CRONIMET Group machines in Europe.

By using the Solmec EXP 5020ZE, approximately 30 tons of CO2 can be saved per year compared to using a diesel-powered machine. The material handler has a 40 kW electric motor with a rotation speed of 2,300 rpm and a maximum rotation torque of 300 Nm. In its rear there are two lead-acid battery packs of 930A at 120V each, which can be exchanged for other batteries if necessary, so that the machine is basically able to work through without major delays. The battery packs are charged at two external chargers, of which each is fitted with a 63A CEE plug system and can thus be connected to conventional power sockets.

An energy recovery system increases the operating time of the Solmec EXP 5020ZE by recovering energy through brake regeneration when the slewing system brakes and storing it in the main battery. Likewise, the machine has a system to support the passive loads of the machine. It consists of the hydraulic cylinders directly connected to a hydropneumatic accumulator that guarantees an additional hydraulic power and speed.

BVG Baumaschinen GmbH from Dachwig in Thuringia, Germany will be the future contact for CRONIMET regarding the Solmec EXP 5020ZE. As the only general importer for Solmec in Germany, BVG has carried out the handover to CRONIMET and will in future take care of all maintenance and service work as well as necessary repairs on the new material handler at CRONIMET Ferroleg. GmbH in Karlsruhe.

 

About the CRONIMET Holding Group

The CRONIMET Holding Group, headquartered in Karlsruhe, Germany, is a global specialist for stainless steel scrap and ferroalloys. The focus here is on returning metallic raw materials to the materials cycle through recycling and processing, thus contributing to the securing of raw materials and raw material efficiency. For more than four decades, the company has been supplying raw materials to the stainless steel producing industry. The CRONIMET Holding Group was founded in 1980 and, today, has more than 1600 employees at 68 locations worldwide.

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CRONIMET Group generates record sales in 2022 and joins "Inner Circle" inititative of Outokumpu

Karlsruhe, August 15, 2023

  • Syndicated loan agreement extended ahead of schedule, by one year, to 2026

  • Strong sign of banks’ confidence in the strategy being pursued by CRONIMET Group

  • Half-year results for 2023 on target despite difficult market environment

The CRONIMET Holding Group, headquartered in Karlsruhe, Germany, has extended the syndicated loan agreement with its partner banks ahead of schedule, by one year. This secures the company’s financing, which is 100 percent family-owned, until September 2026. 

The syndicated loan agreement with 13 German and European partner banks, which was renewed in 2022, also provides for a further one-year extension. “The early extension of the financing agreement with a volume of approximately EUR 660 million is a strong sign of the banks’ confidence in our strategy and our strengths,” says Bernhard Kunsmann, CFO CRONIMET Holding GmbH. “The banks are thus rewarding our good performance, even in difficult times.”

For the first half of 2023, the CRONIMET Group recorded a strong result and is thus in line with its planning, although sales are below those of the first half of 2022 and heightened interest rates have also triggered an additional burden. “It is currently difficult to assess market developments,” says Jürgen Pilarsky, CEO and majority shareholder of CRONIMET Holding GmbH. “Demand in the market is on the decline, after we experienced two unusually strong years in 2021 and 2022. This affects the European market and – with some delay – now also the US market, in particular, which is important for us. We expect the market environment to remain challenging in the third quarter of 2023.”

CRONIMET is well-prepared for the upcoming months characterized by low demand. The organizational structure has been the subject of continuous development, and new business approaches are constantly being sought into which existing competencies and networks can be integrated. Particularly positive prospects are seen here in the newest business area – battery recycling. “Our broad positioning with the end users of our products across a diverse range of industries and regions, as well as the financing now secured for another three years, will certainly get us through the next, few difficult months to come,” says CEO Jürgen Pilarsky.

About the CRONIMET Holding Group

The CRONIMET Holding Group, headquartered in Karlsruhe, Germany, is a global specialist for stainless steel scrap and ferroalloys. The focus here is on returning metallic raw materials to the materials cycle through recycling and processing, thus contributing to the securing of raw materials and raw material efficiency. For more than four decades, the company has been supplying raw materials to the stainless steel producing industry. The CRONIMET Holding Group was founded in 1980 and, today, has more than 1600 employees at 68 locations worldwide.

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CRONIMET Group generates record sales in 2022 and joins "Inner Circle" inititative of Outokumpu

Karlsruhe, June 06, 2023

  • Strong result in a difficult operating environment

  • CRONIMET joins the initiative for a circular economy

  • CRONIMET Group receives bronze medal in EcoVadis sustainability rating

The CRONIMET Group, headquartered in Karlsruhe, Germany, is reporting record sales of EUR 4.1 billion for the fiscal year 2022, and has also once again exceeded its operating profit from 2021 by approximately 10%. The 100 percent family-owned company was thus able to successfully defy the major geopolitical challenges of 2022.

Following extremely robust sales in the first half of 2022, there was a significant drop in demand from key customers in the stainless steel industry in the summer. This decline was due, in particular, to price increases on the energy markets and high-level inflation, which led to a fall in demand for products from the stainless steel mills. The resulting lower scrap demand from stainless steel mills only recovered in the fourth quarter, with the result that sales volumes in the stainless steel and special alloys business were only just below the record level of 2021 and at the same level as 2020.

The CRONIMET Group was able to close the 2022 fiscal year with an operating result of more than EUR 77 million. “With such a success, we have clearly exceeded all the requirements set by lending institutions and secured our corporate financing, even in these challenging times and for the years to come,” said Bernhard Kunsmann, CFO of the CRONIMET Group.

“The market environment remains difficult as a result of the terrible war in Europe and inflation in key markets,” says Jürgen Pilarsky, CEO and majority shareholder of CRONIMET Holding GmbH. “The primary reasons for the positive annual result were the flexibility of our employees, who adapted their work accordingly and immediately to the new prevailing situation, and our unchanged spirit of cooperation rooted in partnership with our customers and suppliers.”

CRONIMET is the first signatory of Outokumpu’s “Inner Circle” initiative

CRONIMET is thus also intensifying its long-standing partnership with Outokumpu and joined the stainless steel producer’s “Inner Circle” initiative at the end of May. “In doing so, we are setting an example for a sustainable and efficient circular economy in the stainless steel industry,” explains Jürgen Pilarsky.

Outokumpu’s “Inner Circle” initiative aims to connect stainless steel processors, recyclers and steel mills more directly, thereby rendering supply chains more transparent, faster and more efficient. Outokumpu presented the initiative at the World Circular Economy Forum on June 1, 2023. “The level of cooperation between CRONIMET and Outokumpu was excellent during the joining phase of the “Inner Circle”. The main reasons for this were our long-standing partnership, the shared values of fairness and openness, and the common goal of promoting a sustainable circular economy for stainless steel,” says Marijo Zeljko, CEO Europe of CRONIMET Holding GmbH.

CRONIMET’s recycling activities make a significant contribution to promoting a circular economy in the stainless steel industry. The use of secondary raw materials processed by CRONIMET conserves resources and saves at least 4.3 tons of CO2 per ton of stainless steel in subsequent steel production compared with the use of primary raw materials.

“With our expertise and our measures for sustainable scrap processing, we see ourselves as an enabler of a true circular economy in the stainless steel sector,” Marijo Zeljko continues. Joining the “Inner Circle” as part of the common goal of resource-efficient steel production is a further step towards CRONIMET’s vision of a holistically sustainable society.

Systematic further development of sustainability management

Thus, CRONIMET has also invested in the further development of sustainability management in 2022. In April 2023, the CRONIMET Group received the Bronze Medal from EcoVadis. The leading international sustainability rating evaluates – according to 21 criteria – across four core topics: Environment, Labor and Human Rights, Ethics and Sustainable Procurement. Especially in the area of Environment, CRONIMET delivered a top performance with 70 out of 100 possible points, and is thus clearly above the industry average of the recycling industry.

“The EcoVadis award shows that we are on the right track with our sustainability management. We want to make our entire business sustainable,” says Bernhard Kunsmann, who is also responsible for sustainability management.

About the CRONIMET Holding Group

The CRONIMET Holding Group, headquartered in Karlsruhe, Germany, is a global specialist for stainless steel scrap and ferroalloys. The focus here is on returning metallic raw materials to the materials cycle through recycling and processing, thus contributing to the securing of raw materials and raw material efficiency. For more than four decades, the company has been supplying raw materials to the stainless steel producing industry. The CRONIMET Holding Group was founded in 1980 and is now present worldwide with more than 1500 employees at 68 locations.

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CRONIMET Group commits to the climate protection targets of the Science Based Targets initiative

Karlsruhe, January 24, 2023

  • Globally active company commits to target net-zero standard by 2050

  • Commitment is part of the Group’s sustainability strategy

  • CRONIMET is a member of the “Business Ambition for 1.5°C” campaign

The globally active CRONIMET Group is setting an example and taking the next step with its climate strategy. The Germany-based company is now joining the Science Based Targets initiative (SBTi) to combat climate change. In doing so, CRONIMET commits itself to the climate protection goals of the international initiative and at the same time lines up with the “Business Ambition for 1.5 °C" campaign of the UN Global Compact. 

With its commitment to the SBTi, CRONIMET has agreed that the entire Group set short- and long-term targets for company-wide emission reductions to comply in line with the science-based net-zero standards of the SBTi. “Joining the SBTi represents another consistent step in our CSR strategy. Of course, the goals we have set are high. As a company in the circular economy, we acknowledge our responsibility and want to contribute to a sustainable future. The fight against climate change is part of this and requires the quickest of action from all of us,” says CRONIMET CEO Jürgen Pilarsky. 

To achieve its goals, CRONIMET focuses on avoiding emissions by using renewable energies, electrifying the machinery and vehicle fleet, and by the reduction of emissions through efficiency measures. “In our climate strategy, we have developed concrete measures for those responsible on site to plan and implement their specific reduction targets,” explains Head of CSR Management Konstantin Müller. 

The CRONIMET Group will report regularly on its progress in a standardized and transparent manner in its CSR Report and via SBTi.

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CRONIMET Holding Group and partner banks extend cooperation ahead of schedule

Karlsruhe, September 30, 2022

  • Bank consortium increases loan volume to 700 million Euros 

  • Financing of business operations secured until at least 2025 in difficult market environment

 

A banking consortium consisting of 13 German and European banks and CRONIMET Holding GmbH have extended the existing syndicated loan agreement until 2025 and increased the loan volume by more than 100 million Euros to approximately 700 million Euros. This secures the financing of the family-owned company based in Karlsruhe until September 2025. The partners also concluded extension options for a further two years.


“The early extension and the increase in the credit volume are a strong sign from the banking market and give us financing security for the upcoming years, which are likely to be rather difficult in view of the current geopolitical and economic environment,” explains Bernhard Kunsmann, CFO CRONIMET Holding GmbH. For the first time, the financing package also includes a credit line that allows CRONIMET to respond more flexibly to the market environment and, in particular, to volatilities in the raw materials markets.

The banking syndicate, with Commerzbank, Deutsche Bank and HSBC as the lead banks (mandated lead arranger and bookrunner), was also expanded and diversified to include several regional and also international banks. “The banks are not only rewarding our good corporate development in recent years, but also our sustainable business model,” says Bernhard Kunsmann. As the world’s leading company in stainless steel recycling, CRONIMET stands for resource conservation and raw material security in equal measure. In 2022, the CRONIMET Holding Group submitted its first sustainability report in accordance with the internationally recognized framework of the Global Reporting Initiative (GRI) and is consistently working on the implementation of its sustainability strategy, in particular the goal of working CO2 neutral in by 2030.

In the first two quarters of 2022, the CRONIMET Holding Group generated very good earnings. Since the beginning of the third quarter, the outlook has clouded over, and forecasts are difficult to make. Jürgen Pilarsky, CEO and majority shareholder of CRONIMET Holding GmbH, is nevertheless optimistic. “Currently, it is difficult to predict how market demand will develop in view of rising energy prices and the associated decline in stainless steel production. Thanks to the very good earnings performance to date, I am nevertheless very confident that we will achieve our target result for 2022 in the Group.”

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CRONIMET commissions first battery-powered excavator SENNEBOGEN 825 Electro Battery in operation

Karlsruhe, September 13, 2022

  • Significant contribution to reducing CO2 emissions in the recycling process

  • Innovation project sponsored by the German Federal Ministry of Economics and Climate Protection

The Karlsruhe-based stainless-steel recycling specialist CRONIMET Ferroleg. GmbH has put the first SENNEBOGEN 825 Electro Battery battery-powered excavator into operation. It was developed as an innovation project of the company SENNEBOGEN Maschinenfabrik GmbH with the cooperation of CRONIMET.

The aim of the innovation project was to significantly reduce CO2 emissions in the recycling process. The new battery-powered excavator combines the flexibility of traditional diesel-powered excavators with the benefits of a zero-emission electric excavator that also has lower maintenance and energy costs. The battery-powered 30 t electric excavator 825 Electro Battery enables completely emission-free work and thus makes a significant contribution to reducing CO2 emissions at CRONIMET. “With this innovation project, we are taking a decisive step on the road to CO2 neutrality,” says Marijo Zeljko, Managing Director of CRONIMET Ferroleg. GmbH. “Electrification of our machinery is a key component of our climate strategy.”

The companies of the CRONIMET Group have committed to operate in a CO2-neutral manner by 2030. “As CRONIMET Ferroleg. we are ready to invest in innovation and move forward in the industry. That’s why we are very pleased that the project has been funded by the German Federal Ministry of Economics and Climate Protection,” says Marijo Zeljko.

Currently nine excavators are in operation at CRONIMET Ferroleg. GmbH in Karlsruhe, returning around 140,000 tons of stainless-steel scrap and other alloyed scrap to the raw material cycle every year. Initially, CRONIMET will use the battery-powered excavator for feeding the scrap press, preparing material for the press, and for sorting work in the incoming goods department. The battery-powered excavator runs on 100 percent certified green electricity and saves up to 125 metric tons of CO2 emissions per year in two-shift operation compared with the previous solution – and with the same freedom of movement.

CRONIMET supported the product development with important practical know-how and actively participated in the prototype status of the machine. The battery-powered electric excavator developed in the innovation project is thus optimally geared to the requirements of demanding metal recycling.

The SENNEBOGEN 825 Electro Battery is based on the SENNEBOGEN 825 E with 110 kilowatt electric motor. The operating weight of approx. 30 tons and the range of 14 meters are unchanged. Its power storage unit, a lithium-ion battery pack with 378 kilowatt hours of storage capacity installed at the rear of the machine in place of the counterweight, enables the excavator to operate flexibly for up to 8 hours without intermediate charging. When used stationary by cable, it can work and charge at the same time. Thanks to the onboard charger and the 63A CEE plug system used, the electric excavator can be connected to conventional power sockets, so there is no need for additional investment in charging columns.

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CRONIMET Group presents its first sustainability report

Karlsruhe, August 15, 2022

  • Sustainability report follows internationally recognized GRI framework

  • Emphasis on CO2 neutrality

Holding GmbH has published its first group-wide sustainability report. The Germany based company follows the internationally recognized standard of the Global Reporting Initiative (GRI), option: core. “With standard-compliant reporting, we want to report comprehensively and transparently on our sustainability commitment in all dimensions,” explains Bernhard Kunsmann, CFO of CRONIMET Holding GmbH.

As a globally active company with around 70 locations on six continents, CRONIMET is committed to its responsibility for the environment and society. A project team has been preparing the Group-wide report and strategy for the past two years. This has laid the foundations for further developing the strategy in close collaboration with stakeholders and defining additional, concrete goals in the areas of environment, social affairs, and governance. A key goal: CRONIMET aims to reduce directly caused CO2 emissions across the Group by 2030 and become CO2 neutral in Scope 1 and 2, as well as achieve the Net Zero standard of the Science Based Targets initiative (SBTi) by 2050.

“This is a very ambitious goal that we are pursuing with vigor and strategy because we are convinced that, as a company in the circular economy, we can also make our contribution here,” explains CFO Bernhard Kunsmann. CRONIMET is currently preparing to join the SBTi. “We embody sustainability in our business model and in the way we see ourselves,” emphasizes majority shareholder and CEO Jürgen Pilarsky. “But it is not enough for us, as the world market leader in stainless steel recycling, to make a significant contribution to resource efficiency by returning valuable raw materials to the materials cycle. We want to go beyond this and make our corporate practices even more sustainable at every point: for the environment, our employees, our company and for society.”

The GRI Report and the accompanying sustainability magazine are published on the website of CRONIMET Holding GmbH.

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CRONIMET Group successfully concludes anniversary year 2021 – Changes in the management board

Karlsruhe, February 16, 2022

  • World market leader in stainless steel recycling consolidates its position

  • Oliver Kleinhempel retires from the management board and will will focus even more on the operating business in the future

The CRONIMET Group, world market leader in the recycling of stainless steel scrap with headquarters in Karlsruhe, has concluded its 40th anniversary year very successfully. Despite the increasingly difficult global trade relations, some restructuring within the industry and, of course, the still ongoing pandemic: the world market leader has come through the turbulent times very well and was able to further consolidate its position as number one in the industry. This is also reflected in the economic success. For the first time in more than ten years, the operating result before interest and depreciation has risen to over 100 million euros.

The CRONIMET Group has not only grown in its core business. Rather, the Karlsruhe-based family business has once again done what it has excelled at over the past 40 years: Recognizing and seizing opportunities. For some years now, CRONIMET has been working new business areas which – docked to the core business of metal recycling – are intended to further broaden the company's business base. In addition to the processing of metal sludges by the subsidiary CRONIMET Envirotec in Bitterfeld near Leipzig or the processing of a tungsten stockpile with approximately 12 million tons of tungsten ore tailings from a closed mine in Australia, another field of activity has been added in 2021 with the recycling of materials (cobalt and nickel) for the production of batteries for electric vehicles.

"What has always distinguished us have been our employees, their expertise and their flexibility. That and our partnership-based relationships within our industry, which have grown after more than 40 years, have also enabled us in this case and continue to enable us to recognize such opportunities as they arise and then to take advantage of them to secure the future of our company," says Jürgen Pilarsky, CEO of CRONIMET Holding GmbH.

Despite all economic success, the shareholders and management of the CRONIMET Group are also aware of their social responsibility. Thus, in 2021, the "Corporate Social Responsibility" area was expanded in terms of personnel as well as investments were made at many subsidiaries, for example, in solar energy and e-mobility, not only in the vehicle fleet, but also on the sites themselves. "We are convinced that the topic of sustainability has become second nature to all our employees, so we are very confident that we will also achieve our goal of being climate-neutral in 2030," says CFO Bernhard Kunsmann, who is responsible for CSR on the Executive Board.

CRONIMET also wants to be among the pioneers when it comes to women in management positions. "Even though there are currently no legal regulations for companies of our size, we have signed a voluntary commitment according to which there should always be at least one woman on our holding company's management board," says Annette Gartner, the managing director responsible for human resources, among other things. Majority shareholder and CEO Jürgen Pilarsky would even like to see equal representation on the management board in the future.

Oliver Kleinhempel focuses even more on operational business

In addition to the operative business, CRONIMET has also set the course for the future in terms of personnel. After Jürgen Pilarsky, son of the company founder Günter Pilarsky and CEO of CRONIMET Holding GmbH, took over the majority share in the family-owned company in 2021, another restructuring at the highest management level will follow early in 2022.

Oliver Kleinhempel has left the management of CRONIMET Holding GmbH for personal reasons on February 1, 2022. Kleinhempel will remain with the company and in the future will devote himself even more strongly and operationally to his previous areas of responsibility of Raw Materials, Processing and Business Development as well as our businesses in Asia and Australia. This move will enable him to focus even more intensively on the opportunities available to CRONIMET in the raw materials markets in the future.

"We respect Oliver Kleinhempel's decision and are also very pleased that he will remain with the CRONIMET Group. I know that he will continue to bring the same high level of commitment to his areas of responsibility and I look forward to a continued very successful collaboration," says Jürgen Pilarsky, to whom Kleinhempel will report directly in the future. As Oliver Kleinhempel will continue to perform his operational duties in the future, there are no plans to fill his position within the management of CRONIMET Holding.

Outlook 2022

For the 1st quarter in the new fiscal year, CRONIMET expects a continuation of the good development of 2021. Also for the 2nd quarter of 2022 a high utilization of the customers' capacities is emerging, so that the management assumes that the planning for the entire year will be achieved.

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Expert opinion confirms: No abnormalities in water quality in the Voghji River in Armenia

Karlsruhe, August 6, 2021

The CRONIMET group of companies has been facing allegations of environmental pollution in Armenia and Azerbaijan for several weeks. More specifically, the Voghji River, which flows from Armenian territory into Azerbaijan, is said to be heavily polluted. The allegations relate to the Armenian ZCMC mine, in which CRONIMET held shares until 2019.

CRONIMET comprehensively and transparently supports clarification of the reasons behind these allegations. Therefore, CRONIMET has informed the Armenian ZCMC copper-molybdenum mine, which has been named as the culprit, about the allegations and asked for a statement. ZCMC subsequently provided a water analysis, which CRONIMET had reviewed by a recognized, independent soil and water analysis expert based in Germany.

Allegations that the water ZCMC used in mining and subsequently returned to a nearby river after treatment was highly contaminated were clearly refuted by the expert report. According to the independent expert's analysis of ZCMC's documents, the report does not give any indication that the river has been polluted by ZCMC.

On the contrary, it shows that the measured values for water quality do not exhibit any significant anomalies. Only the pH value is slightly elevated, as well as the manganese value.

In detail: In the Drinking Water Ordinance of the Federal Republic of Germany, a guideline range of 6.5 to 9.5 is specified for the pH value. According to the expert opinion, the average pH value for the water discharged into the Armenian River is 10.375. With this slightly increased value, it can be assumed that after a short flow distance there is no longer any negative influence on the pH value of the river.

In the Drinking Water Ordinance of the Federal Republic of Germany a limit value of 0.05 mg/l is specified for manganese. Here, the value for the discharged water is 0.068 mg/l. For manganese, too, it can be assumed that even after a short flow distance there is no longer any negative influence on the water quality of the river, especially since the manganese concentration recommended by the World Health Organization (WHO) is 0.4 mg/l and thus far above the values mentioned.

Those responsible for the CRONIMET group of companies are surprised by the accusations against the company. Not only because CRONIMET has not held any shares in ZCMC since 2019. But also because numerous steps were taken to improve water quality and over 60 million dollars were invested in environmental protection measures during the period in which the group of companies was the majority shareholder of the mine (until 2019).

About the CRONIMET Holding Group
The CRONIMET Holding Group, headquartered in Karlsruhe, Germany, is a global specialist for stainless steel scrap, ferroalloys and primary metals. For four decades, the company has been supplying raw materials to the stainless steel producing industry. The focus is on trading & sales, recycling and production & services. The CRONIMET Holding Group was founded in 1980 and today has a global presence with more than 1500 employees at over 70 locations.

Contact person:
CRONIMET Holding GmbH
Stavros Georgiou
Press spokesperson
Südbeckenstraße 22
76189 Karlsruhe, Germany
public-relations@cronimet.de
cronimet.com

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