French engineering steels producer Ascometal is implementing its 2015-2017 development plan. It has signed an agreement with its financial institutions to improve its cash flow, divest its non-steel investments and increase equity, boosting competitiveness it says.

“The company has largely improved its performances of quality and service and regained the trust of clients and suppliers… Ascometal is positioned today as one of the European leaders in special long steel products for the automotive, mechanical and oils and gas industry,” the company says in a note, seen by Kallanish.

Asco Industries sales split in 2015 comprises 60% direct and indirect sales to the automotive sector, 25% to the engineering industry and 15% to the energy market. The company’s French facilities are being re-organised, it confirms. Its site in Cheylas, Southern France, has been shut down for modernisation work and production volumes from there have been transferred to Custines in Northern France, Kallanish notes.

“The fast scrap price decline [… in France] has boosted competitiveness for the electrical steel sector. [… Ascometal’s] steel shipments outside the energy sector increased 5% year-on-year thanks to the increasing demand from the European automotive sector” the note says.

As previously reported, Ascometal went into receivership in March 2014 and was acquired by Swedish engineering steels producer Ovako together with a French consortium in July 2014. Ascometal has six production plants in France: Fos-Sur Mer, Le Cheylas, Custines, Le Marais, Les Dunes, and Hagondange.