Cognor has acquired Czech graphite electrode producer JAP Industries and its dedicated logistics provider Spedex for a combined CZK 280 million ($12.2m).
JAP Industries produces electrodes from imported feedstock, as well as trading in ferroalloys. The products are both key input materials for electric arc furnace-based steelmaking, which Cognor employs.
JAP is a long-standing supplier of Cognor, which had a circa 15% share in JAP’s overall sales in each of the last three years. Its acquisition is in line with the steelmaker’s strategy of shortening its supply chains and reducing risk of raw materials procurement delays.
JAP posted revenue of CZK 879m and net profit of CZK 115m in 2021.
Cognor saw crude steel production plummet 25% on-year in the third quarter due mainly to longer-than-usual maintenance stoppages, which were timed to coincide with weakening demand, although revenue and profit rose (see Kallanish passim). In the nine months through September, revenue surged 39% on-year to PLN 2.74 billion, while net profit doubled to PLN 476.9m.
Adam Smith Poland