Aluminium Duffel, a European leader in the aluminium rolled product sector, navigates a complex global market where managing foreign exchange risks is pivotal for competitive edge and stability.
Given that Aluminium Duffel generates 20% of its revenues in the United States, their business is exposed to USD foreign exchange risk. Their company policy is to be risk-averse towards market price fluctuations and their treasury department was looking for a way to reduce their foreign exchange exposure, as much as possible. Recognising the intricacies of financial challenges, Aluminium Duffel engaged Corpay Cross-Border Solutions, a specialist in financial solutions.
Corpay’s strategy was holistic and custom-made, entailing a thorough analysis of Aluminium Duffel’s financial exposure and the execution of strategic initiatives. These initiatives targeted the mitigation of risks related to foreign currency fluctuations, a common challenge in international trade with substantial impacts on profitability. The collaboration resulted in a remarkable reduction in Aluminium Duffel’s foreign exchange exposure by approximately 20%, a testament to Corpay’s proficiency in financial risk management.
This achievement reflects not only the effectiveness and adaptability of Corpay Cross-Border Solutions in shifting market conditions but also highlights Aluminium Duffel’s commitment to proactive financial management. The successful navigation of foreign exchange risks has fortified Aluminium Duffel’s market position and established a new benchmark in financial management within the aluminium industry.
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About our sponsor
Global businesses trust Corpay Cross-Border to power their international payments, execute plans to manage their currency risk and support their growth around the world. Utilising their proprietary payment automation technology and currency risk mitigation solutions, Corpay takes pride in connecting companies large and small with the global financial markets and businesses all over the world. Corpay is owned by FLEETCOR Technologies, Inc. (NYSE:FLT) a leading S&P 500 member and global business payments company based in Atlanta, Georgia, USA.