May, 8th 2024
In a high-risk industry in terms of credit exposure and rapidly changing prices, Stena Metal values the stability and security that Allianz Trade credit insurance brings to its business.
Stena Metal International AB is one of Europe’s leading companies in the recycling industry, providing recycled metal to various companies around the world.
With headquarters in Gothenburg, Sweden, the company has been in operation since 1939. Since then, Stena Metal has expanded to eight countries including Norway, Denmark, Finland, Poland, Switzerland, Germany, Italy and the USA.
Stena Metal’s customers are found in most sectors globally, including manufacturing, automotive, retail, energy, transport and logistics, and municipalities.
According to CFO Erik Larsson, the ambition of Stena Metal is to drive a business that contributes to a more sustainable society. Allianz Trade credit insurance is an important part of that ambition.
"Stena Metal International AB had a turnover of close to 14 billion in the previous financial year, and with individual transactions amounting to many millions, we face a high risk in our credit exposure. Stena Metal has a solid credit policy and it means that we, in principle, always must have security for a claim. That's where Allianz Trade comes into the picture", says Erik Larsson.
A dedicated team
Stena Metal has been working with Allianz Trade for almost 15 years. The collaboration brings stability and security, making it possible for the Swedish recycler to run a sustainable business.
"The biggest benefit that Stena Metal enjoys through Allianz Trade's services is, above all, that we avoid risk and that we know we are working with creditworthy customers. This secures our margins, secures our cash flow and gives us a stable platform to work long-term with our strategic partners", says Erik Larsson.
Stena Metal is a prioritised partner, which means that the Swedish company enjoys the benefits of a dedicated team within Allianz Trade, explains Mikael Magnusson, Senior Business Relationship Manager at Allianz Trade.
"I am responsible for that. However, the most important people are my colleagues responsible for risk assessment who do analysis and make credit decisions. Especially important is the dedicated underwriter who has responsibility for all credit limits. No decisions go to Stena Metall without them being verified and reviewed by this person", says Mikael Magnusson.
Security in a market with rapid price changes
A big advantage of the dedicated team, says Erik Larsson, is that they have built up a great understanding of how Stena Metal operates.
"Our products are sold in markets with rapid price changes, which means that we can quickly be in need of a higher credit limit. Through a good understanding of our business and a close collaboration, we can make quick decisions", he says.
This has been especially clear in the past few years, where prices have been quite volatile, explains Mikael Magnusson.
"Stena Metal’s customer portfolio has a good credit rating according to our grading model, and we are usually able to help meet their increased credit limit needs", Mikael Magnusson says.
The ability to quickly respond to changes in the market will, according to Erik Larsson, be very important going forward as uncertainty and risk will increase.
"Working with payment terms and credit will be an important piece of the puzzle going forward in business dialogues and that’s why it feels extra safe to have a strong partner in Allianz Trade. It helps us secure our money and our future profitability", says Erik Larsson.