Celsa has overcome the effects of the pandemic in the United Kingdom, one of the main markets for the Catalan steel industry.
According to sources of the multinational, the British business has exceeded the 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 return a loan of 35 million euros (equivalent to about 30 million pounds) that the Government of the United Kingdom granted it to overcome the effects of the crisis caused by the coronavirus. “In the 2022 financial year, the aid was returned in full, as Celsa complied with the projections made in the loan application”, they point out.
In addition, the group shows its impact on the country’s economy, since 20 years ago it was able to refloat a local steel mill and turn it into what it is today. Celsa Steel UK, the British division of the group, comes from Allied Steel
“Currently, the factory is involved in key infrastructure projects, such as steel for the new nuclear power plant in Hinckley or Terminal 5 at Heathrow Airport”, comment these sources, who add that, between 2008 and in 2010, the British subsidiary was directed by Francesc Rubiralta, the company’s current CEO.
The operation in the United Kingdom can be extrapolated to that of the whole group and, of course, to the company’s activity in Spain, where the company is pending the obtaining of public aid worth 550 million euros that 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 around 3.5 billion euros.
The situation can be clarified after the holding of the trial that begins today and lasts until July 11. The commercial court number 2 of Barcelona will have to declare in favor or against the approval of the restructuring plan, which will determine the future of the property of this large family group. If this plan is approved, the property will remain in the hands of the creditor funds, which will convert the debt into shares. Creditors include large entities such as Deutsche Bank, Goldman Sachs, Cross Ocean Partners and SVP Global.
The Rubiralta family wants to prevent creditors from getting 100% of the capital. A few months ago, he proposed to sell part of the property to unlock the negotiations on the debt.
