American Zinc acquisition boosts Befesa stock value

Luxembourg-based metals recovery firm now one of 90 largest companies on Frankfurt stock exchange.

September 7, 2021

Luxembourg-based Befesa S.A. has joined the MDAX stock index, which has been designed to include the 50 largest companies in terms of market capitalization just outside of Germany’s DAX index, which contains the 40 largest market cap companies.

Deutsche Börse AG in Frankfurt made the announcement welcoming Befesa in early September, following a review of the index composition and after considering “the positive effects” of Befesa’s acquisition of United States-based electric arc furnace (EAF) steel dust recycling services firm American Zinc Recycling (AZR).

Befesa overall describes itself as a leading provider of hazardous waste recycling services, “enabling the circular economy within the steel and aluminum industries."

After its IPO in 2017, Befesa has grown to reach the MDAX index thanks to its strong market capitalization growth over the course of the past three years, the firm says. “This, in turn, was driven by the company’s resilient business model, provision of sustainable environmental services and consistent delivery of strategic goals and milestones,” Befesa says.

“Befesa’s inclusion in the MDAX is a significant and encouraging step for us,” says Javier Molina, CEO of Befesa. “We continue expanding our globally balanced footprint. We have grown to recycle more than 2 million metric tons of hazardous waste per year, contributing actively to the protection of the environment by offering state-of-the-art environmental services to our customers in the steel and aluminum industries.”

In addition to the acquisition of AZR (now known as Befesa Zinc US Inc.), Befesa’s expansion in China includes the development of what it calls the first two EAF dust recycling plants in that nation. Construction of the first plant in Changzhou (in Jiangsu province), was completed earlier this year. The second plant, located in Xuchang (in Henan province), is scheduled for completion by the end of the year.