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Celsa Group plans to sell Polish plant to reduce debt

Spanish steel producer Celsa Group is considering selling its steel plant in Poland to reduce its debts as it ends 2024 with a loss of EUR 281 million. Rafael Villaseca, the company's non-executive chairman of the board of directors, announced the plans.

Celsa Group plans to sell Polish plant to reduce debt

The company's debt burden decreased by 48% to EUR 1.896 billion following a change of ownership in April this year. Villaseca stated that the group was considering asset sales, including the sale of its operations in Poland. That facility accounts for about 20% of Celsa's revenues.

The Huta Ostrowiec steel plant in Poland is known as one of the largest metallurgical plants in the region. It produces rebar and specialty boron steel and employs more than 2,000 people.

Villaseca emphasized that efforts are underway to improve operating results and increase profitability, while their main goal is to reduce debt. Celsa CEO Jordi Casorla, on the other hand, defined 2024 as a “transition period” and stated that the company aims to turn profitable again in 2026.

On the other hand, Celsa is evaluating asset sales as well as financing options to restructure its debts. In April, the company decided to sell its subsidiaries in the UK and Northern Europe to Czech investment group Sev.en Global Investments, aiming to reduce its debt with the proceeds.

In line with its commitments to the Spanish government, Celsa Group had sought to involve local industrial investors, but suspended its search after the investment holding CriteriaCaixa pulled out of the deal.

The company announced that while there is currently no industrial investor alternative, the process could be restarted in the future.

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