Posted on 22 Nov 2024
Celsa Steel UK and Celsa Nordic are to be 100% acquired by Sev.en Global Investments following an agreement with Celsa Group announced on Thursday, Kallanish learns.
The acquisition will see Sev.en enter the steel industry and expand its European industry footprint. The company declined to comment on the transaction value.
Alan Svoboda, chief executive of Sev.en Global Investments, says: "We perceive the steel industry as vital for our growth trajectory; therefore, we are thrilled to finalise this landmark agreement. This acquisition fortifies our position on the European market including the entry into the promising Scandinavian markets. Production of green steel also advances Sev.en GI clearly towards sustainability."
The new investor has not specified its definition of “green” steel.
The acquired mills are electric arc furnace-based producers utilising steel scrap. Celsa Steel UK, recognised as the largest steel recycling company in the UK, is based in Cardiff with a production capacity of 1.2 million tonnes/year of construction steel.
Celsa Nordic operates in Norway, Finland, Sweden, and Denmark. It has a fully integrated production chain encompassing scrap metal collection, processing, and manufacturing of finished steel products for the construction sector, as well as being powered by renewable hydro energy.
"Both facilities are technologically advanced and well-established European leaders in green steel production. We are eager to collaborate closely with both management teams and other stakeholders to further develop these assets and unlock their long-term potential," Svoboda notes.
"We are constantly on the lookout for new growth opportunities in all our focus industries worldwide. I am happy that the steel industry is now part of our core portfolio," he adds.
The company investment portfolio spans coal mines in Australia and the US, as well electricity power stations.
Earlier this year, the Celsa Group rejected a bid for its Polish plants, while Emsteel was said to be in talks to acquire the group’s operations.
Source:Kallanish
