Swiss Steel Group says it remains focused on its core business

Swiss Steel Group has issued a statement pertaining to its restructuring and refinancing efforts and media speculation surrounding the moves.

The Switzerland-based metals producer, which operates recycled-content electric arc furnace (EAF) mills under the name Finkl Steel in Chicago and Quebec, introduces its January statement by writing, “Over the past few days, a number of media reports have been published about Swiss Steel Group, which have given rise to rumors about the current business situation.”

In late December, Swiss Steel announced its subsidiary, Ascometal France Holding, had entered into negotiations with Acciaierie Venete for the sale of several production sites in France.

The planned transaction with Italy-based Acciaierie Venete includes the sale of three Ascometal France facilities in that nation and the activities and workforce of CREAS, Ascometal's research center, according to Swiss Steel Group.

Just a few weeks earlier, Swiss Steel Group completed the divestiture of several metals distribution entities in Central and Eastern Europe, selling them to the IMS Group, a division of France-based Jacquet Metals.

Without elaborating on where reports on the company’s future have been published, or what those reports were suggesting, the executive officers of Swiss Steel released the following statement: “The steel industry finds itself in a challenging environment, which also affects Swiss Steel Group. Swiss Steel Group is currently implementing its far-reaching strategy and restructuring program. The work is proceeding according to plan. The focus is currently on concentrating on the core business, which also includes reviewing parts of the company regarding their future viability: the planned sale of parts of Ascometal in France is the next important step in the implementation of the strategy program.

“Current loans at Swiss Steel Group will mature in spring 2025. The refinancing process usually begins around one year in advance. Swiss Steel Group's financing is secured until further notice. Further information will be published in due course. ... Swiss Steel Group formally rejects the rumors circulating in the media reports mentioned above.”

One recent skeptic of the firm has been SimplyWallSt.com. Last December, a nonbylined report stated in part, “Anyone who held Swiss Steel Holding AG for five years would be nursing their metaphorical wounds since the share price dropped 87 percent in that time.”

Regarding the firm’s present and future status, the author adds, “We doubt long-term believers are the only worried holders since the stock price has declined 68 percent over the last 12 months. Furthermore, it’s down 36 percent in about a quarter. That's not much fun for [share]holders.”