Tubos Reunidos requests 115 million from the rescue fund as its production falls by 80% due to the Covid-19 crisis
The company from Alava had managed to refinance a debt of 351 million in 2019 and was confident in the reactivation of the sector with energy investments in renewables and hydrogen
Assembled Pipes, a company with 125 years of history, has claimed the Government of Pedro SÃ¡nchez their help to ensure its continuity in 2021. The Alava industry has registered with the State Society for Industrial Participations (SEPI) a total of 115 million euros through individual loans participatory (100 million) and ordinary (5 million) with which to face the effects of the global economic crisis caused by Covid-19. The seamless tube company justifies its request by the stoppage of more than half of the projects already contracted, which represents a drop of 80% in their expected production.
Tubos Reunidos emerged in 1892 with the creation of Forged Tubes and the stoppage of the world economy due to the coronavirus pandemic has forced it to ask for help from the rescue fund approved by the Pedro SÃ¡nchez government to “strategic companies”. The support fund for strategic companies was created in July 2020 and is endowed with 10,000 million euros. It was conceived as an instrument to “grant temporary public financial support to reinforce business solvency “when the recipients have been hit by the effects of Covid-19 and their activity is considered” strategic. “To activate this extraordinary financing, Tubos Reunidos -the first large Basque company to go to Ã © He- has had to register his request and must facilitate the SEPI to carry out a due diligence in which you examine your financial situation.
Tubos Reunidos has underlined in the public communication the request for this rescue that it counts “with a unique capacity in the segment of its activity in Spain” and that he is able to “offer tailored products” to his clients when the economic recovery takes place after the pandemic. The effects of Covid-19 have hit hard a company that since 2016 has addressed a ambitious transformation plan that was beginning to pay off in 2019, a crucial year because it managed to refinance the debt of 352 million euros with a pool of banking entities.
The global stoppage as of March forced Tubos Reunidos to a process cost readjustment which has been finalized in two employment regulation files. Last October the last one that affects 686 employees in Spain with reductions in working hours of up to 66% and that will extend over the next 8 months. The conditions of this ERTE were not endorsed by the unions although the management of Tubos Reunidos recognized a 50% drop in its order book.
Francisco Irazusta assumed leadership of Tubos Reunidos as CEO in April 2020 after two financial agreements in 2019 that facilitated a new refinancing plan in July and an additional 15 million in loans in December. Good recovery forecasts for the sector, changes in production aimed at the ‘premium’ product market and a direct marketing policy supported the objective of increasing sales 284.4 million turnover in 2019.