Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

European steel producer, Celsa, is considering accepting the rescue fund sponsored by the Spanish government, in response to the negative impact COVID-19 has placed on the company.


Based in Barcelona, the long steel product supplier has faced a plunge in sales and a deficiency in liquidity that has led to difficulty in attending to urgent expenditures, according to news reports.


The company is weighing the circumstances related to the rescue fund and whether it will cash in on it. However, it has not yet requested for help as Celsa continues to collect further details regarding the assistance package.


The vertically integrated company is making an effort to secure €200mn ($237.1mn) from the fund, per media reports. Conversely, the Spanish government requires that the steelmaker prove its current economic state and proof that its condition was sustainable through the end of 2019, to acquire the financial backing.


Celsa will also need to demonstrate that COVID-19 has had an exceedingly adverse effect on its production, business, or workforce, at the local or national level.


The group has annual steel sales of about 7mn mt with its Barcelona operations accounting for 2.5mn mt of yearly steel production capacity. The company operates in 11 countries with six large units that comprise of steel mills, rolling mills, transformation plants, along with distribution, service, and recycling centers.


($1 = €0.84)

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