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Sonasid Reports 5% Sales Growth Driven by Strategic Investments and Regional Expansion

Sonasid Reports 5% Sales Growth Driven by Strategic Investments and Regional Expansion
Monday 25 November 2024 - 12:16
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Sonasid, Morocco’s leading steel producer, has announced a 5% rise in sales, reaching MAD 3.704 billion by the end of September 2024. This growth is attributed to a 12% increase in sales volumes over the first nine months of the year, reflecting the company's effective strategies and investments.

A significant contributor to Sonasid's success is its ongoing capital expenditure program, which reached MAD 106 million by September. This is part of a planned investment of MAD 184 million for 2024. A key development in this plan is the completion of a prestressed wire production unit, expected to be introduced to the market by year-end. Additionally, Sonasid has reported cash surpluses of MAD 656 million, showcasing its strategy to reinvest funds into industrial initiatives with long-term value creation.

The company's growth aligns with its “Act For Impact” strategic plan, which emphasizes business development, increased competitiveness, and the introduction of innovative, low-carbon steel products. Sonasid is optimistic about the future, especially with the anticipated growth in Morocco’s construction sector in the coming months.

Regionally, Sonasid continues to strengthen its presence in North Africa, with partnerships in Mauritania, Algeria, and other key markets. These collaborations enhance its raw material supply chain and contribute to its overall expansion.

Sonasid's roots in the Moroccan steel industry trace back to its establishment as a cornerstone of the country’s construction sector. A significant milestone was the commissioning of an electric steel mill in Jorf Lasfar in 2005, which reduced reliance on imported billets. The company’s strategic evolution accelerated in 2006 when it entered into a partnership with global steel giant ArcelorMittal. This collaboration facilitated technology transfers and expertise sharing, boosting Sonasid’s competitiveness in both domestic and regional markets. The partnership also led to the creation of Nouvelle Sidérurgie Industrielle (NSI), which holds a 64% stake in Sonasid. Leadership within the company alternates between the Société Nationale d’Investissement (SNI) and ArcelorMittal, with each entity appointing a CEO every three years.

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