Viohalco Group focused on its flexible business model and diversified portfolio during a recent presentation.
Analyzing the group’s performance in the industrial sector and the real estate sector, it was emphasized that the positive performance of the steel cable and pipe sectors was a result of the increased demand for energy projects and their improved competitive position.
The copper division maintained high operating profitability boosted by the performance of subsidiary Sofia Med. The aluminum sector saw lower demand across a wide range of aluminum products amid macroeconomic challenges.
However, the sector has shown resilience and maintained its operational profitability, with concerted efforts aimed at reducing borrowing. The decrease in turnover was mainly attributable to the performance of Bridgnorth Aluminium, Viohalco’s UK subsidiary, as a result of the contraction of the lithography sector.
The performance of the steel sector was also subdued as it was affected by the strong decline in steel demand in Europe throughout the year, with the exception of strong demand in Greece and increased activity for hot-rolled plate, which were respectively positively affected by growing construction sector in Greece and the growing preference for solutions with a low carbon footprint. The real estate sector performed positively.
The aluminum sector, the increase in recycled content in packaging solutions, energy-efficient infrastructures, as well as the trend to reduce weight in vehicles, especially electric ones, will continue to boost demand for aluminum solutions, Viohalco said. The product portfolio of ElvalHalcor’s aluminum sector is diversified, both in different geographical areas and in product categories, while its further expansion is sought in faster growing product sectors and value-added applications. Also, Viohalco focuses on establishing strong partnerships for its future growth and competitive position.
In copper, process optimization initiatives have been undertaken, while contracts for investments have been concluded, with the aim of utilizing the production capacity for high added value products and increasing the dimensional range of the existing product portfolio of the Sofia Med plant in Bulgaria, which is expected to be completed in 2024.
The cable industry continues to be strong, both in cable products and cable projects, as demand for the former remains strong and the backlog of projects continues to grow. Electrification and the need for energy security will be the main trends for at least the next decade.
During 2024, the steel pipe sector will continue its extensive research and development program on hydrogen transport, carbon capture and storage (CCS) technologies, as well as potential opportunities in the offshore wind farm sector. This program is supported by a strategy focused on innovation, including the digitization of processes in continuation of certifications from international energy companies, and on geographic diversification, always aiming to further strengthen the company’s competitive advantage.
Regarding the steel sector in Greece, the development of the construction sector is expected to continue. However, in a broader context, steel demand is negatively affected by the uncertain macroeconomic environment shaped by global tensions at least for the first half of 2024. However, steel companies will continue their efforts to effectively adapt to the current fluctuations in markets, further enhancing their competitiveness and operational efficiency in 2024.
As far as property management is concerned, the positive results were attributed to the increased traffic and increased tenant turnover recorded in Noval Property’s shopping centers, as well as an increase in rental income. In addition, Noval Property continues to prepare for the listing of its shares on the Athens Stock Exchange, which is expected to take place in 2024.
