Spanish long steel supplier Celsa Group is considering applying to the Spanish government rescue fund to help overcome the impact of the Covid-19 crisis on its business, Kallanish notes.
“The company is currently studying carefully the conditions disclosed by the solvency fund and whether to take advantage of the temporary public aid offered to strategic companies, which as a consequence of the pandemic need additional financing on a temporary basis,” Celsa says in a note.
Celsa is trying to secure €200 million ($237m) from the fund, according to media reports. In order to obtain financial support, as required by the Spanish government, the steelmaker needs to demonstrate its economic situation was viable to the end of 2019. It also needs to show Covid-19 has had a highly negative impact on its activity or employment, at the national or regional level.