Fagor Arrasate got off to a terrific start in 2022, landing new projects in all business areas. In the first four months alone, 26 new projects worth 102 million euros were launched.
As Unai López Moñux, CEO of Fagor Arrasate, points out, “2022 began with a better outlook than 2021, but it is not free of risk factors either, as the global economic recovery, already weaker than expected and with large country-specific differences, harbors significant uncertainties.”
Thus, the serious deterioration of some economies due to profound effects of the Corona restrictions is compounded by foreseeably high inflation, depending on the production structure. This jeopardizes the recovery of some sectors of the economy, especially since this is not a one-time cut after the restrictions are lifted, but will take place over a longer period of time due to its impact on raw material and energy costs and the feedback with incomes.
However, “at Fagor Arrasate we are confident that the turnaround initiated in 2021 and the positive development of the first four months of 2022 will be consolidated. Thus, for the 2022 financial year, we expect an order intake of more than 190 million euros, which would be 20 percent more than in 2021,” concludes Unai López Moñux.
Resumption of activity
After the unspeakable year of 2020, in which the pandemic had a serious impact on investment activity in those sectors in which Fagor Arrasate operates, slowing down contracting processes, especially in the automotive sector, the Basque manufacturer has now achieved a brilliant business result in 2021 with the acquisition of orders worth 160 million euros – 70 percent higher than in 2020 and 8.5 percent above the annual forecast. This practically corresponds to the level before the pandemic.
Revenue for fiscal 2021 was EUR 126 million, still burdened by the exceptionally poor order situation from 2020 – with EBITDA of EUR 8.2 million.
Analyzed by area, the NAFTA countries performed particularly well in 2021. They accounted for one third of revenue. Also noteworthy is the result achieved in Turkey, a country with a high concentration of production activity by manufacturers and suppliers to the automotive sector, where Fagor Arrasate has received important orders that strengthen its presence in the country. At the other end of the balance sheet, the German market is stagnating at a low level of investment.
Looking at the areas of activity, in 2021 the Steel Business Area benefited from the increase in raw material prices, which again pushed the propensity of Fagor Arrasate’s customers to invest in the steel and aluminum value chain.
The Automotive business area is also seeing a revival of investment, stimulated by the shift to electromobility, which is creating new demand (for example, lightweight materials) and new applications (such as batteries and secondary products) for which Fagor Arrasate has cutting-edge innovative solutions. In this context, it is worth noting that composites manufacturing equipment now accounts for around 10 percent of new orders at the company.
The Household Appliances business stands out extremely positively due to strong demand on a global scale – as a result of the Covid 19 pandemic. As a result, this business unit achieved an excellent result and more than made up for 2020. The result exceeds management plan projections for 2021 and also years prior to Corona.
About Fagor Arrasate
Fagor Arrasate is one of the world’s leading companies in the design and manufacture of customized solutions for the forming of steel, aluminum and stainless steel on presses and punching systems, cutting and coil processing equipment, and complete solutions for the production of complex metal parts. In addition, the company specializes in composite forming, hot and cold forging, and hot stamping.
Fagor’s main customers include major international automotive manufacturers such as the Volkswagen Group, Ford and Stellantis, their strategic suppliers such as Gestamp, CIE and Magna, steel industry companies such as Tata, Arcelor Mittal, Acerinox, Gonvarri and Bamesa, and household appliance manufacturers such as Bosch-Siemens, Whirlpool, Mabe, General Electric and Haier.
After more than 60 years of company history, Fagor Arrasate has six manufacturing plants, Five service hubs for technical assistance and one R+D+I center, as well as numerous sales offices worldwide. Fagor Arrasate currently employs 660 people in its plants in the Basque Country, China, Mexico, Germany and the USA. Around 85 percent of production is exported.
Fagor Arrasate is a founding member of the Mondragon Corporation, one of the largest groups of companies in Europe with a total of 80,000 professionals.