New avenues for growth and profitability, ranging from new defense contracts outside Greece and plans for investments in scandium and germanium, to potential energy deals with France’s EDF, as well as METKA’s upcoming IPO, highlight Metlen’s progress toward its medium-term target of €2 billion in EBITDA.
The range of these new business activities, which will serve as the new profit engine alongside the familiar drivers—namely renewable energy, alumina production, and defense equipment for the armed forces, was unveiled yesterday by Evangelos Mytilineos at a General Meeting—a turning point, as he described it, following last year’s setbacks with the Protos project in the UK.
All of the new initiatives and production lines are considered critical to achieving the company’s goals, especially following a “off-year” for Metlen, as its CEO called it, noting that last year the company experienced a “steep learning curve regarding projects with increased complexities, higher costs, and extended timelines.”
Referring to the importance of disciplined project execution, Metlen’s strong leader said that “the way the challenges were addressed falls under my responsibility, ” making special mention of strengthening corporate governance and planning processes, as well as reducing debt leverage, with the goal of lowering the Net Debt/EBITDA ratio to 2x from just over 3x today.
He did not fail to send a message to the short funds that have been capitalizing on the stock’s recent volatility, stating that they are shorting shares without knowing what a company actually does.
"If Metlen’s momentum accelerates, as I expect, then all of them will be looking for a way out. That is, they’ll be looking to buy shares to cover their positions. Rest assured, I have them in mind," he said pointedly.
Batteries and contacts with EDF
Looking at the big picture from here on out, a series of new growth initiatives are taking center stage , with energy remaining the primary driver of profits.
The first piece of news appears to concern the battery sector. Specifically, to reduce the €150–200 million annual electricity bill incurred by its energy-intensive Aluminum plant, Metlen is reportedly considering a major investment in energy storage, which would utilize cheap solar power on a 24-hour basis during the morning and midday hours.
The second piece of news relates to the visit to Athens (following Macron’s visit) by EDF Chairman Bernard Fontaine, who met with Evangelos Mytilineos on Wednesday.
The French giant is discussing with the Greek company the development of large solar farms through a joint venture in construction and management—an area where the two sides have a long history—as well as collaborations in data centers.
The other news with a decade-long horizon, of course, concerns the partnerships the French are seeking in the nuclear sector, as they are also knocking on Greece’s door following Mitsotakis’s recent statement regarding the country’s decision to consider the development of SMRs. “We are interested in the issue, but it is too early for investments in this sector,”say sources at Metlen.
Scenarios for new partnerships with PPC
Responding to a question about how he views the expansion of PPCfollowing its major capital increase, he praised the company and spoke of a tremendous success, with Metlen sources not ruling out new collaborations between the two.
“The geographical scope that PPC is targeting is so vast, just like ours, that I consider it very likely we will collaborate again in the future,”they noted.
In practice, this could mean that in the three new Central European countries where PPC plans to enter (Slovenia, Hungary, Poland), a model similar to that used for photovoltaics in 2024 (development of renewable energy projects in six countries) and batteries in 2026 (construction of a total capacity of 1.5 GW in Bulgaria, Romania, and Italy) could be replicated.
After gallium, scandium, and germanium
Outlining the company’s business model, the CEO discussed developments across Metlen’s entire spectrum of activities, such as gallium, noting that projects involving other rare earth elements will follow .
“Scandium and germanium won’t be the difficult cases. Others are coming; it will be a very interesting and major undertaking,” said Mr. Mytilineos, while news is also expected soon regarding gallium, where the price surge to $2,500 per kilogram—up from $300 just 2–3 years ago—has not slowed demand.
Referring to this frenzy, he explained that customers from the U.S., Japan, Europe, and South Korea interested in purchasing part of the plant’s production at “Aluminion” —which begins in 2027, with an increase to 50 tons per year by 2028— are asking to sign contracts with a “price cap, ” as no one knows where prices will end up.
When asked who the largest customers will be, company sources respond with a meaningful “Europe first, ” noting that the issue also has a political dimension, given that the €296 million investment in Boeotia is being financed with €90 million from the European Investment Bank.
Defense: Jobs Coming Outside Greece
In the defense sector, the company is now moving not only toward concluding new agreements for the co-production of weapon systems ( submarines) for the needs of the Navy and weapon systems for the Army, but is also exploring potential international collaborations beyond the narrow confines of defense procurement programs. This is an issue that Mr. Mytilineos had mentioned during last month’s Greek-French forum.
“The discussion with the head of Naval Group, Pierre-Eric Pomelle, concerned defense projects both within and outside Greece,” he noted yesterday. It should be noted that the defense sector is growing rapidly; its contribution to this year’s operating profits will more than double, and for this reason it will likely soon become a separate company, similar to METKA in the infrastructure sector.
METKA on the Stock Exchange
In the infrastructure segment, METKA is preparing for its listing on the Athens Stock Exchange. This move is part of a broader strategy to strengthen the group’s individual activities and highlight their value.
Today, METKA has a backlog of 1 billion euros and zero debt, with Mr. Mytilineos announcing that, beyond what we already know, we will see further developments from this subsidiary.
“We will proceed immediately with the IPO, and decisions will be made based on market developments. METKA will have autonomy and will face competition with strong capital. It may have zero debt, but it is clear that it needs significant capital support,” he said.