Spain’s Celsa inks preliminary agreement with CriteriaCaixa to sell 20% stake
Spain-based long steel producer Celsa Group has announced that it has signed a preliminary agreement with Spanish investment company CriteriaCaixa to sell a 20 percent stake in the company. The transaction is expected to be finalized in the coming weeks.
This alliance will support Celsa’s ongoing financial restructuring efforts and provide a strong boost to its industrial development strategy.
The process of incorporating a Spanish investor with an industrial focus began with the launch of an operational efficiency plan, financed by a capital increase, and the divestment of certain assets located outside the country, as SteelOrbis previously reported.
Redirection of Asian steel trade worries EU
Spain’s Celsa Group has joined the European steel sector in warning that the main impact of US tariffs will not be on European exports but rather on the influx of material from countries such as China, Indonesia and North Africa. These imports are expected to be redirected to Europe following the closure of the US market, Kallanish understands.
Celsa’s president, Rafael Villaseca, calls for stronger EU protection against potential trade diversions during the visit of European Commission vice president Stépahne Séjourné to the group’s plant in Castellbisbal. Like other European executives, Villaseca expresses concerns that Chinese steel is already being imported with state subsidies and does not meet Europe’s environmental standards.
“At a time of declining domestic consumption in China, rather than reducing production, they are shifting supply to other markets that lack protectionist measures, such as Europe,” he warns.
“Deindustrialisation is already a reality, with a loss of 29 million tonnes of annual production over the past decade. Strong political action is essential to defend European interests. We must curb unfair imports, ensure competitive energy costs, strengthen protection against carbon leakage, and guarantee that scrap generated within the EU is recycled within the continent,” he emphasises.
During the meeting with Séjourné, key measures were proposed for inclusion in the Steel and Metals Action Plan (see separate story). These included reviewing and strengthening EU safeguard measures to reflect current market conditions and prevent unfair competition. Another priority discussed was the need to secure access to affordable energy to maintain industry competitiveness and ensure the effective implementation of the Carbon Border Adjustment Mechanism (CBAM), reinforcing circular economy objectives.
Celsa accounts for 0.65 percentage points of the 3.3% of Spanish steel exports to the US.
Todor Kirkov Bulgaria
Celsa sells UK, Nordic steel subsidiaries to Czech investor Sev.en
Spain-headquartered long steel producer Celsa has sold its UK and Nordic subsidiaries to Czech investment group Sev.en Global Investments, the two companies announced Nov. 21 in separate statements.
Celsa Steel UK is the largest EAF-based steel producer in the UK with production capacity of 1.2 million mt/year of crude steel at its plant in Wales. Celsa Nordic has operations in Norway, Finland, Sweden and Denmark and produces via its EAF-based plant in Mo i Rana, Norway, with output of 683,000 mt of rebar and wire rod in 2023.
Celsa said it would “devote all the funds received after the divestment to the reduction of Grupo Celsa’s indebtedness in accordance with the legally assumed commitments.”
It did not give a price for the deal, although Spanish newspapers citing industry sources said the price tag was Eur600 million ($632 million).
“Through this important divestment, which is added to the recent increase in share capital and the launch of an ambitious efficiency plan, Grupo Celsa continues with the implementation of its plan to reorganize its industrial and financial situation, focusing on its operations in Spain and on the reduction of financial leverage,” Celsa said.
Earlier this year, Celsa said it was considering selling its international operations in Norway, Poland and the UK to pay off its debts, while in October parent company Celsa Steel approved a capital increase of Eur166 million to fund a comprehensive efficiency and growth initiative.
This is the first entry into the steel industry by Sev.en, which has a track record of targeting restructuring and growth acquisition opportunities, particularly in power generation and mining of various natural resources.
“The integration of Celsa’s steel plants will enhance Sev.en Global Investments’ diverse portfolio by adding a combined production capacity of 2 million mt of steel products annually. These products, primarily used in construction applications such as bars, sections, mesh, and wires, underscore the group’s unwavering commitment to sustainable industrial practices,” Sev.en said in its statement.
Sev.en Global Investments is part of the Sev.en Group, whose beneficiary is Czech entrepreneur and investor Pavel Tyka.
Platts, part of S&P Commodity Insights, assessed Northwest Europe Rebar Ex-Works Wkly at Eur600/mt on Nov. 20, stable week on week. Since the beginning of the year prices lost Eur20/mt, but they are still well below the highest historical prices reached on March 30, 2022 when they recorded Eur1340/mt base ex-works.
Celsa rejects bids for Polish plant: sources
Polish steelmaker Celsa Huta Ostrowiec has received acquisition bids from at least two southern European long steel producers, but both were below the valuation of its Spanish parent company, multiple sources tell Kallanish.
Celsa has been looking to divest a number of its European operations, including in Poland and the UK, to raise cash to alleviate financial problems. Sources indicate the group has set a sales price target of €800 million ($890m) for its Polish electric arc furnace-based steelworks that produces around 1 million tonnes/year of rebar, beams and merchant bar.
The operation has good prospects considering Poland is expected to receive and utilise new EU funds from 2025, which will be put towards construction projects that are expected to increase steel demand.
Representatives from one other European steelmaking company are meanwhile visiting Celsa’s 1.2m t/y EAF-based UK plant in Cardiff this week, for which the group is seeking €200m, sources reveal.
Celsa could not be reached for comment.
Celsa’s is not the only Polish plant up for sale. Plate maker Huta Czestochowa, owned by Liberty, is looking for a new owner after being declared insolvent, with at least five potential suitors in the running.
Adam Smith Poland
