LONDON (dpa-AFX) - Aurubis CEO Roland Harings believes the copper group is on track for the strong production expansion planned in the coming years. "Our growth projects are progressing," the company's leader said at a capital markets day in London on Tuesday afternoon. In total, the MDax group plans to invest around €1.1 billion in the U.S., Bulgaria and Germany by 2026, as previously announced. As Aurubis has had little experience with the construction of new, large plants and extensive growth investments, appropriate management and control systems have been created, Harings explained.

Aurubis shares extended their gains in the afternoon in a positive market environment and were last quoted at slightly over 80 euros, up three and a half percent. They thus continued their recovery after falling back from an interim high above 100 euros at the beginning of February to almost 70 euros by the end of May.

Harings, who took over the management of the Hamburg-based company in mid-2019, has since been gearing the company towards more growth. With the control systems in project management, he wants to avoid the mistakes of his predecessor. For example, Aurubis already had big growth plans once. However, the ripcord was pulled on the FCM project in 2019 due to significant cost increases; Haring's predecessor was let go at that time just a few weeks before his departure, which was planned anyway.

The recycling plant in Richmond (USA), where production is scheduled to start later in 2024, is expected to make the biggest profit contribution of the current growth projects. Earnings before interest, taxes, depreciation and amortization (Ebitda) are expected to reach about 170 million euros per year. Aurubis intends to benefit from the continued recycling boom in the country. Until 2030 alone, the availability of relevant recycling materials in North America is expected to grow by about five percent per year, it was said in one of the numerous company presentations on Thursday.

In total, all current projects are expected to generate around 260 million euros in operating profit from fiscal 2026/27. By comparison, Aurubis generated earnings before interest, taxes, depreciation and amortization of 753 million euros in fiscal 2021/22. The growth plans also include the expansion of the tankhouse in Pirdop, Bulgaria, at a cost of €120 million. This will increase capacity for the final purification step in the production of pure copper by half to around 340,000 tons by the second half of 2026. The Hamburg plant will also be expanded in order to process more recycling material and large volumes of internal, complex smelter intermediates.

In addition to the current investment of around 1.1 billion euros, another 280 million euros could be added in the medium term, which should then contribute an additional 70 million euros to operating profits. However, decisions on this will probably only be made in the coming years. Additional projects such as battery recycling, which is becoming increasingly important in the age of electromobility, are not yet included in this figure.

Aurubis is now looking all over Europe for a site for a possible battery recycling plant. This is also due to the high energy prices in Germany. "At the beginning, we said Hamburg was the first choice for a first battery recycling plant. But looking at the current political and energy situation, we have to put a question mark behind that," Harings said. "We are talking to politicians and they are listening and want this technology in Germany as well." However, he added, there are not yet sufficient motives for choosing a site here in Germany, which is why Aurubis is looking around for alternatives./mis/ck/men