It is reported that Acerinox, one of the major stainless steel producers in the world, faced significant earns drop of 40% in 2011 and a dip of 57% in the first quarter of 2012.

Analysts said that it is due to the demand for stainless steel is not positive, basically caused by weakness of European market and the growing capacity in China.

Besides, the behavior of the nickel price is not helping the company, which composed half of the production costs of the company. Acerinox's sales dropped by 13% and its EBITA fell by 36% in Q1 2012 as compared to the same period last year.

The company's consultant Mr Bernardo Velázquez said that Acerinox improves its productions efficiency but there are other factors such as unfair competence from other countries such as China, India and Brazil, who had received a lot of subsidy, duty protections and AD from government.

On the other hand, the EU countries don't protect the industry at all, including the free competence and high cost of green energy. Acerinox's strategy to fight against the crisis is to cut production cycles and improve its logistic management.

The company is keep moving toward its Strategic Plan 2020, including its new factory in Malaysia and its commercial network. Besides, the company also could save EUR 90 million at the end of this year, based on its plan Excellence 2011-2012.

Source - www.yieh.com)

(www.steelguru.com)