Reports that Spanish long steel producer Celsa is considering selling its steel mills in Norway, Poland and the UK have caused concern in European metals markets, sources told Fastmarkets on Friday, February 16.
Talk of a potential sale comes during a turbulent financial period for Celsa Steel, which lenders bought after years of payment problems just six months ago.
Celsa, a major producer of long products in Europe, also owns large steel operations in Spain and France. It is one of the largest buyers of ferrous scrap in the local markets in which it operates, including Spain and the UK.
A Celsa spokesman said on Friday that "no decision has been made regarding the sale or acquisition of assets." The spokesperson also noted that the company has conducted “research work” with financial institution Citi to “assess the fair market value of our assets.”
But a UK steel market source familiar with the matter told Fastmarkets on Friday that Celsa does "intend to sell some of its steel mills", including the UK unit. However, the source said he believed jobs at Celsa's operations would be saved in the short term.
“These factories are among those that are making money, whereas in Spain there were labor problems that they are struggling with,” the source said. “Even if they sell, they have to ensure that jobs remain for three to four years,” he said, but with a process like this, “you never know.”
In Poland, Celsa owns the Huta Ostrowicec steel mill located in Ostrowiec Świętokrzyski. The company has two electric arc furnaces (EAFs) with a total capacity of about 2 million tons of raw steel per year. Celsa Huta Ostrowiec produces reinforcement and steel of special quality (SBQ).
In Cardiff, Celsa has two EAFs with a combined capacity of 1.2 million tonnes of crude steel per annum; The company produces long rolled steel, including rebar and wire rod.
In Mo i Rana, Norway, Celsa has an EAF with a capacity of 700,000 tons per year and produces rebar and wire rod. Impact on the Polish market Celsa is one of three valve manufacturing companies in Poland. Therefore, any change or closure of Celsa's assets could have a major impact on the country's steel market.
