PRESS AND INVESTOR ANNOUNCEMENT

Befesa commences construction of second recycling plant in China as planned

Luxembourg, 13 November 2019 - Befesa S.A. ("Befesa"), the international market leader for steel dust and aluminium salt slags recycling services, today hosted a ground breaking ceremony to mark the start of construction of its new steel dust recycling plant in Xuchang in the Chinese province of Henan. The plant will be Befesa's second in the country and is designed to recycle 110,000 tons of EAF steel dust per year.

Befesa's CEO, Javier Molina, and Asier Zarraonandía, Vice President of Befesa's Steel Dust Recycling Services Business, were joined by the Mayor of Xuchang, Mr Shi Gengzhi, and other officials to celebrate the start of construction. In total, the plant represents an investment around EUR42 million.

Commenting on Befesa's developments in new markets, Javier Molina said: "We are very pleased with our progress in China. With our second plant starting construction, Befesa reaffirms its Asian expansion plan launched just one year ago. We're thrilled that the development of our Henan plant is now a reality. We are committed to provide sustainable solutions and contribute to environmental protection in China".

Henan is located in central China, with a population of around 95 million people and a GDP of USD 726 billion. Over the past two decades, Henan has developed rapidly, and it is home to some of the most important producers of Electric Arc Furnace (EAF) steel in China.

Befesa's first development in Changzhou in the Jiangsu Province started construction in Spring 2019 and is progressing according to plan. The ramp-up of the Jiangsu plant is expected for the end of 2020, with production expected to start in 2021.

In addition, earlier this week, Befesa successfully completed the upgrade of its aluminium plant near Barcelona with higher efficiency furnaces. Befesa continues to be on track to execute its organic growth initiatives globally.

About Befesa
Befesa is a leading international provider of regulated environmental services to the steel and aluminium industries with facilities located in Germany, Spain, Sweden, France and the UK, as well as in Turkey and South Korea. Through its two business units, Steel Dust and Aluminium Salt Slags recycling services, Befesa manages and recycles more than 1,500 kt of residues annually, with a production of more than 600 kt of new materials, which Befesa reintroduces in the market, reducing the consumption of natural resources. Further information can be found on the company's website: www.befesa.com

Investor Relations
Rafael Pérez
Email: [email protected]