The industrial waste management company Befesa purchased the remaining 50 per cent of Recytech
the French steel mill dust recycler company it had previously owned together with its now-insolvent joint venture partner Recylex
CEO Javier Molina described the acquisition as an important milestone in the European component of the recycler's growth plan
and the acquisition of the remaining 50 per cent in Recytech represents the opportunity to strengthen our leadership position in this crucial market
positioning us for further growth," Mr Molina added
Recytech is headquartered in in Fouquières-lès-Lens in northern France and processes dust from electric arc furnace (EAF) steel mills
extracting zinc and converting it into waelz oxide (WOX)
Recytech recycles around 110,000 tonnes of EAF steel dust per year and produces 45,000 tonnes of WOX
Befesa's acquisition of the outstanding shares in the joint venture is intended to provide long-term stability for Recytech's employees
The company stressed that the financial troubles that let to Recylex's liquidation resulted from challenges in the lead-acid battery recycling business and were unrelated to its interest in Recytech
The €40m cash consideration paid for the remaining stake in the business represented an earnings before interest
depreciation and amortisation (Ebitda) multiple of 3.5 on the basis of an entire business cycle
"Unifying the Recytech business in Befesa’s operations in France reinforces our commitment to the market and is a firm demonstration of our confidence in the current local leadership team
The strategic location of Recytech will enable us to expand our EAF steel dust recycling services further in the heart of an area where EAF steel production will grow over the coming years," explained Mr Molina
Recytech's central location in the European steel industry growth area had high strategic value and offered Befesa the opportunity to expand its European operations by constructing a second kiln through a brownfield project in Fouquières-lès-Lens
The acquisition was therefore also an essential part of Befesa's five-year plan for sustainable global growth
which was announced in November 2022 and which includes nine growth projects in Europe
The investment in Recytech is the first phase of increasing Befesa's EAF dust recycling capacity in Europe
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