Celsa Steel UK celebrates 20th anniversary with record turnover and profitability
- The leadership of its circular and low-emission model, driven by Francesc Rubiralta, current CEO of the Group, has made the company the largest producer of low-emission corrugated steel in the country and the first scrap recycling company in the United Kingdom.
- The steel of Celsa Steel UK has been chosen over its competitors for major government projects such as Heathrow Terminal 5 and the Hinckley nuclear power station.
- A record turnover of €996M and EBITDA of €99M in 2022 guarantee the suitability of the model established by Celsa Group in the United Kingdom.
- Its good operation has enabled it to fully reimburse the British Government for an emergency loan of 30 million pounds granted during the pandemic, after meeting the projections made by the company in the application for public aid.
Castellbisbal, July 2023.- Twenty years ago now, Celsa Group acquired a company in the United Kingdom (Cardiff) that was in full bankruptcy and decided to invest more than 250 million pounds to restore and recover it. Since then, and thanks to this restructuring, the company began a progressive evolution until its current consolidation. Today Celsa Steel UK is the largest producer of low-emission rebar steel in the country and the UK’s leading scrap recycling company. A journey of 20 years in which the company has demonstrated its viability, and which has served not only to ensure the permanence of the 1,500 jobs of the company that was acquired in 2003, but also to consolidate a generation of employment in the industrial sector, to which today 300 new employees and professionals have already been added.
In the 2022 fiscal year, Celsa Steel UK reached a record turnover of €996M and EBITDA of €99M, magnitudes that allow the company to reach its 20th anniversary with record results in its history and a consolidated value chain that supports its competitiveness and future viability.
Francesc Rubiralta, key in the transformation of Celsa Steel UK
From the beginning, Celsa Group saw that the viability of Celsa Steel UK was possible through the implementation of the circular and low-emission steel production model that the Group leads in Spain and Europe. A model based on the production of steel in an electric furnace, technological development and a circular value chain based on the supply of iron scrap as raw material. The key years of the transformation of Celsa Steel UK occurred between 2008 and 2010, coinciding with the management of Francesc Rubiralta of the Group company in the United Kingdom. Rubiralta, current CEO of Celsa Group, came to Celsa Steel UK from Celsa Nordic to replicate the Group’s circular production model as had already been done in the Nordic company. His commitment to the production of steel through the recycling of ferrous scrap led him to strongly promote the construction of a new steel mill with an electric arc furnace at the Cardiff plant. The model also contemplated the vertical integration of scrap yards to ensure the sustainability of production and the consolidation of a value chain around the company.
Today the Cardiff plant is a model of circular steel production in the United Kingdom, which has helped it to capture the growing demand for steel produced with low emissions. Celsa Steel UK’s steel has been chosen for large state projects such as Heathrow Terminal 5 or the Hinckley nuclear power plant, over its competitors.
“Our commitment to circular production, investment in technological development that gives us competitive advantages, and the integration of a vertical value chain that generates a prosperous and viable environment for steel production has allowed us in these 20 years, and under an industrial vision, not only to recover the company we acquired in 2003, but to turn it into another example and benchmark within the Celsa Group of our leadership in the production of low-emission circular steel”, explains Francesc Rubiralta CEO of Celsa Group.
The modern Cardiff plant today integrates up to three scrap yards in its circular model which recently, thanks to one of its projects, has vertically integrated the scrap shredder within its facilities, which clearly optimizes its upstream value chain and facilitates and optimizes the production process.
“Our position in the market and the consolidation of a model over these 20 years allow us to continue guaranteeing sustainable construction in the United Kingdom through our low-emission products and to continue promoting the country’s circular economy”, explains Carles Rovira, CEO of Celsa Steel UK.
Public financing already returned
The British Government considers the steel industry a vital sector for the growth of the country’s economy. After the impact of the pandemic, the British State quickly responded to Celsa Steel UK’s need for supplementary financing. Today, Celsa Steel UK has repaid in less than two years the entire £30 million emergency loan granted during the pandemic, after meeting the projections made by the company in its application for public aid.
Industry recognition in the UK and across Europe
The ability to refloat a company, in a strategic sector for the economy of a country and provide it with a competitive business model fully aligned with the current need of the industry to produce in a sustainable way and with the lowest consumption of raw materials has made Celsa Steel UK a model of success for the industry in the UK and Wales.
This was recognized by the Secretary of State for Wales, David TC Davies, and Cardiff City Council’s Director of Economic Development, Ken Poole, during the 20th anniversary celebration dinner at Cardiff City Hall. The event was also joined by customers, suppliers and employees of the company. Over £14,000 worth of funds were raised at this celebratory dinner, which will go to charity of the year, Ty Hafan, dedicated to helping families whose children are terminally ill.
The recognition that Celsa Steel UK enjoys and that allows it to be one of the leading and most listened to voices in the sector in the United Kingdom extends to the entire steel sector in Europe. The circular production and low emissions model that Celsa Group leads in Europe through its implementation in Spain, a leading country in circular production thanks to the significant presence of Celsa, Poland, Norway and France has given Celsa and its CEO, Francesc Rubilralta, the confidence of the sector to lead its approach to the future from the presidency of Eurofer, steel employers’ organization in Europe and one of the most influential industrial representation groups in industrial policies on the continent.
About CELSA Group
CELSA Group is the first European producer of low-emission circular steel 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 6 business groups and has 120 work centers, 7 steel mills, 12 rolling mills and 45 recycling plants, as well as transformation and distribution companies, which generate direct, indirect, and induced employment for more than 70,000 professionals. It is present in Spain, France, United Kingdom, Denmark, Finland, Norway, Poland, Italy, and Ireland.
The group works to solve the greatest systemic risks on the planet: the depletion of resources and the fight against climate change. To this end, it has set itself the objectives of reducing itsCO2 emissions by 50% and reaching 98% circularity by 2030 and completing its circularity and being a Net Positive company in 2050.
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