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Swiss steel group Swiss Steel has been in deep crisis for years. The debt burden increased by over 50 percent in two years, reaching almost a billion euros. Sales collapsed. The company is burning money and major shareholder Peter Spuhler, 65, doesn’t want to pump in any more money. According to the “Luzerner Zeitung”, the Lucerne government is currently checking whether it can help Swiss Steel.
The group, headquartered in Emmenbrücke, is a major employer in the canton with approximately 700 employees in Lucerne. Regional president Fabian Peter (47) told the local newspaper: “The government council and the Lucerne Economic Development Agency are in contact with Swiss Steel’s management and are constantly examining support options.” Investors welcomed the announcement. The stock rose almost 13 percent to more than 9 cents on Monday.
Major restructuring required
High energy prices have worsened the crisis the steel giant has experienced in the last two years. The Emmenbrücke location and its steel furnaces consume the same amount of electricity as the entire city of Lucerne. Companies with high energy costs abroad can sometimes rely on government support. That is why last autumn the Swiss Parliament adopted a package of measures to support the local steel and aluminum industry.
Comprehensive restructuring measures are required for the group to get out of this situation. Hundreds of people will be laid off in Germany. It is also planned to sell company shares in France. According to banking circles, Peter Spuhler is not going far enough.
Major shareholder Haefner also pledged support
The entrepreneur holds approximately 20 percent of the group through PCS Holding. Spuhler should demand the immediate resignation of Swiss Steel Chairman Jens Alder (66). Alder doesn’t have the backpack for the necessary rebuilding. He was previously CEO of Swisscom and most recently was on the board of Alpiq.
However, the Chairman of the Board of Directors has the trust of another large shareholder: Martin Haefner (69), who holds 33 percent of the group. Haefner is the owner of car importer Amag. “As in previous difficult times, I stand by the community and am fundamentally ready to continue providing significant support in the future,” Haefner told the “Luzerner Zeitung”. He and Spuhler have already helped the company out of trouble several times. (smt)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
