Sidma Metallurgy responds to the Hellenic Capital Market Commission on the effects of the war in Ukraine

Sidma Metallurgical responds to a question from the Hellenic Capital Market Commission regarding the effects of recent developments in Ukraine and Russia on the company’s activities.

In an announcement, the company states the following:

Regarding the Financial year 2021:

– The percentage of turnover related to sales of imported products from the above countries was about 6.5% of the total.

– The percentage of product purchases from the above countries concerned about 6.8% of the total imports of the company.

– The company’s assets do not have any exposure in the above countries.

The company has a large dispersion of suppliers from various countries to ensure the smooth continuity of its supply chain. Many steelmakers, however, depend to a considerable degree on raw material supplies from parts of Ukraine and Russia. At this time it is impossible to calculate the impact of recent developments in Ukraine and Russia on the activities of our suppliers and consequently on the corresponding activities of the company.

Regarding the Administration’s assessment of the indirect effects of recent developments in Ukraine and Russia, in a possible scenario of prolonged conflict, energy costs in the eurozone and consequently in our country will increase, pushing inflation higher. Although the European Central Bank did not immediately plan to raise interest rates to fight inflation, the most likely scenario would be to follow sooner than the central banks of England and the United States.

An indirect effect of the increase in interest rates will be the increase of the financial costs of the company with a corresponding negative effect on its results “.