Scholz Group ‘solid’ amid testing times

Global – Despite tough markets and the worldwide economic downturn, recycling major Scholz Group of Germany registered ‘a solid performance’ in the first five months of its current financial year.

From January to May 2015, the company handled a total of 2.93 million tonnes of scrap, or 10.7% less than the 3.28 million tonnes in the corresponding period last year. The group’s turnover totalled Euro 1.09 billion versus Euro 1.26 billion last time round for a decline of 13.5%. However, profit margins increased partly due to operational cost savings.

The Scholz Group benefited from ‘high demand levels’ in important markets such as Germany and Poland whereas the US and Mexican markets were characterised by ‘falling demand and price levels for the recycling sector as a whole, resulting from the increase in the value of the US dollar and higher imports from China’.

Oliver Scholz, ceo of the Scholz Group, comments: ‘Although the difficult market environment is not helpful in the context of the realignment of our business and has resulted in lower tonnage and prices, the extensive measures aimed at reducing cost levels, improving processes and focusing on higher margins show a clear positive effect.’