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Lucerne steelmaker Swiss Steel is sinking deeper into debt. As Blick found out, banking circles expect annual losses of 200 million euros. This comes as no obvious surprise, looking at Swiss Steel’s half-year figures and the declining results reported by its European steel rivals for the third quarter.
This means that the downward trend accelerated in the second half of the year. The company announced a loss of 30 million euros in the first six months. The debt increased to 942 million euros. Swiss Steel urgently needs to get its balance sheet in order and raise fresh money, as banks’ loans mature in 2025.
For this reason, preparations for capital increase continue in the background. But there is an impasse as the two main shareholders of the Swiss steel company are not going in the same direction. As Blick reported last week, major shareholder Peter Spuhler (65) is making further financial commitments subject to two conditions.
The company must present a coherent restructuring concept and Chairman Jens Alder (66) must resign immediately. Only then will Stadler Rail’s boss be willing to participate in the capital increase. By doing this, he puts great pressure not only on Jens Alder, but also on major shareholder Martin Haefner (70), heir and owner of the billion-dollar Amag Group.
Who will take over if Alder leaves?
This protects the former Swisscom boss with whom he is closely linked. Years ago, Alder managed the family’s large stake in the US software company Computer Associates. It was Haefner who brought Alder to Swiss Steel. As can be heard from those around him, the main shareholder considers the removal of votes to be “dangerous” at this point.
Peter Spuhler sees it completely differently. That’s why it’s time for Alder to go. It has been blocking urgent changes for a year. He is the wrong man at the top of the company, does not know enough about the steel business and has little experience in reorganization. “Handelszeitung” wrote this week that Alder was extremely intelligent but an “aparatchik”.
After Alder’s resignation, the question of who will take over the presidency comes to the fore. Spuhler himself or one of his two representatives currently on the board? These are Aebi Schmidt boss Barend Fruithof (52) and Rieter finance boss Oliver Streuli (35). Fruithof is currently vice president of Swiss Steel. Peter Spuhler left a request unanswered.
CEO goes with the driver
In addition to low numbers, there is also frustration with management. Despite being at the helm of Swiss Steel for more than two years, CEO Frank Koch (52) has not yet arrived in central Switzerland. He travels a lot and is rarely in the centre. The staff is angry that Koch uses a chauffeur.
In addition, Koch, who is officially registered at Engelberg OW according to the business register, regularly flies on weekends to Düsseldorf (Germany), where his “life base” is located, according to a spokesman. Koch received a salary of 3.7 million francs in 2022. Carpet flooring seems to lack the necessary cost awareness, according to staff, as they move from one round of savings to the next and are sometimes forced to work short-term work.
A spokesperson writes that the “most cost-effective option” was chosen for “quick transfers” from train stations and airports. The driver is a retired employee who continues to work for the company on a small scale.
Time is running out
The sick company is expiring. General assembly invitations must be sent within a few weeks. If the two main shareholders do not reach an agreement by then, there will be a showdown. Martin Haefner owns 32.73% of Swiss Steel through his BigPoint Holding. Peter Spuhler reached 20.36 percent. But Russian billionaire Viktor Vekselberg, 66, who owns a large package in Swiss Steel, is likely to agree with him. Spuhler’s side has a good vote rate of 46 percent.
Spuhler could force Jens Alder to be voted out at the general meeting, assuming that some smaller shareholders would also vote along with the well-known industrialist. It is not yet clear when the general assembly meeting will be held this year. It took place in late April last year. The banks involved want clarity on the steel company’s future as soon as possible. They gave the company a maximum credit limit of 465 million euros. The group also includes UBS/Credit Suisse, JP Morgan and BNP Paribas, among others.
The debt burden will continue to increase, with annual losses of 200 million euros. A spokesman for Swiss Steel does not want to comment on the figures: “Our company is in the midst of annual financial statements and will publish information on business results as soon as it is reliable. “We generally do not comment on assumptions or speculation.”
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.
