Description of activity

Centrozłom Wrocław is the leading company, operating on the Polish market, which deals with collection and sale of metal scrap, waste recycling (including recycling of vehicles withdrawn from use and production of alternative fuels), sale of steel and aluminium and manufacturing of construction reinforcement elements. The Company estimates its share in particular markets from 2% to 7%. The Company purchases scrap from production facilities, intermediaries (scrap collection centres), as well as from individual small suppliers. It sells its products mainly on the domestic market. Export currently accounts for approximately 3% of sales revenues. At present, among scrap collecting companies, the market is dominated by small companies operating on local markets and trading low volumes of scrap. They most frequently act as suppliers for medium and large scrap-processing firms and not directly to steel mills. Therefore the scrap-processing market has the tendency to consolidate. The top scrap processing and distribution companies on the domestic market comprise the following companies: Stena, Złomrex, TOM, KEM and Return. Those companies have at their disposal technical equipment enabling them to obtain and process scrap in a manner guaranteeing the high quality of the processed product as material that can be used for production in metallurgy. The strategy of the Management Board of the Company assumes expansion of the scrap purchasing market, especially direct purchasing from waste generating entities, in order to become as independent from intermediaries as possible. The Company also intends to develop its waste salvage and recycling unit. The goal is to provide comprehensive services to enterprises in the field of waste management. The Company also intends to increase its sales of steel, including processed steel.