Celsa Group plans to increase its share capital by 166 million euros to invest in operational improvements
- Celsa Steel, S.A., the parent company of the Castellbisbal-based steel group, has called an Extraordinary General Shareholders’ Meeting for 28th October to proceed with a significant capital increase in cash.
- The steel company is carrying out a Value Creation Plan with the support of Bain & Company, which includes measures and investments to increase the company’s EBITDA, and that will result in a substantial increase in efficiency and profitability.
- To carry out these extraordinary initiatives in all business areas, the company plans to invest up to 166 million euros in 2 phases.
- This plan and the measures presented will notably contribute to strengthening the future of the company, with the support and commitment of the shareholders.
Barcelona, 25th September 2024.- Celsa, a leading producer of low-emission circular steel, will invest 166 million euros over the next two years to implement operational improvements and increase recurring EBITDA. This investment will be financed through a capital increase by the current shareholders, who are demonstrating their commitment to the future of the company. To this end, the Board of Directors of Celsa Steel has called an Extraordinary General Shareholders’ Meeting for 28 October, at which the approval of a capital increase of 166 million euros is expected.
Celsa is implementing a Value Creation Plan with the support of Bain & Company, a leading global consulting firm hired at the beginning of the year. This Plan includes multiple improvement and investment initiatives aimed at increasing the company’s competitiveness in strategic areas (Sales, Logistics, Purchasing, Production, etc.), with a significant return expected in all actions.
The initiatives identified and defined jointly by the Celsa and Bain teams will be financed thanks to this capital increase, contributing – together with the ordinary investment programme – to strengthening Celsa’s future.
As a result of the capital increase, an immediate contribution of EUR 81 million is expected to be used for investments and improvements in Spain through Barna Steel.
The remaining 85 million euros will be provided in a second phase and will be used for investments and improvements in the Group’s subsidiaries in Poland, Norway and Great Britain.
About Celsa Group
Celsa Group is Europe’s first low-emission circular steel producer with the largest circular supply chain in Europe. It recycles ferrous scrap to produce steel in electric arc furnaces, using the most sustainable and energy-efficient technology.
The company is made up of several business groups and has 120 work centres, 7 steel mills, 12 rolling mills and 48 recycling plants (circular hubs), as well as processing and distribution companies, which generate direct, indirect and induced employment for more than 70,000 professionals in Europe. It is present in Spain, France, the United Kingdom, Denmark, Finland, Norway, Poland, Sweden and Ireland.
The group works to solve the planet’s greatest systemic risks: resource depletion and the fight against climate change. To this end, it has set itself the objectives of reducing its CO2 emissions by 50% and reaching 98% circularity by 2030 and completing its circularity and becoming a Net Positive company by 2050.
For more information:
Nuria Jimenez
Tel. +34 693 33 80 47
njimenez@kreab.com
