Celsa has overcome the effects of the pandemic in the United Kingdom, one of the main markets of the Catalan steelmaker.
According to multinational sources, the British business has exceeded income levels prior to the health crisis. In 2022, this division had a turnover of 996 million euros and obtained an ebitda (gross profit) of 99 million euros. “These are record numbers,” they say.
Due to the good progress of the British business, the Rubiralta family group has managed to repay a loan of 35 million euros (30 million pounds) that the United Kingdom Government granted it to overcome the effects of the pandemic. “In the 2022 financial year, the aid was fully repaid since Celsa complied with the projections made in the loan application,” they point out.
In addition, the group flags its impact on the country’s economy, since 20 years ago it was able to revive a local steel mill and turn it into what it is today. Celsa Steel UK, the UK division of the group, is spun off from Allied Steel
“Currently, the factory is involved in key infrastructure projects, such as steel for the new Hinckley nuclear power plant or Terminal 5 at Heathrow airport,” these sources comment, adding that, between 2008 and 2010, the British subsidiary was directed by Francesc Rubiralta, current CEO of the company.
Operations in the United Kingdom can be extrapolated to that of the entire group and, of course, to the company’s activity in Spain, where the company has yet to obtain public aid worth 550 million euros from SEPI approved to alleviate the effects of the crisis. The disbursement is blocked because it depends on the restructuring of the company’s debt, which is about 3,500 million euros.
The situation may be clarified after the trial that begins today and lasts until July 11. The commercial court number 2 of Barcelona must declare itself in favor or against the approval of the restructuring plan, which will determine the future of the property of this large family group. If the plan is approved, the property will remain in the hands of the creditor funds, which will convert the debt into shares. Creditors include entities such as Deutsche Bank, Goldman Sachs, Cross Ocean Partners or SVP Global.
The Rubiralta family wants to prevent creditors from taking 100% of the capital. A few months ago, he proposed to give up part of the property to unblock the debt negotiations.
