The European industry is currently facing a challenging economic environment, which is also impacting the steel sector, including Swiss Steel Group. Swiss Steel Group continues to implement its extensive strategic and restructuring program, following significant measures already undertaken. These efforts have already resulted in substantial cost savings. By the end of the first half of 2024, several important milestones across the Group had been achieved, including the divestment of the French company Ascometal (see announcement from August 14, 2024 Link opens in a new tab.).
The outlook for the second half of the year, as published on August 14, 2024, remains unchanged: It is expected that the business environment will continue to be shaped by subdued developments in customer markets, with low production and demand levels in European industry. The economic growth originally forecasted for 2024, along with the associated industrial stabilization, is expected to be postponed to 2025, also considering the latest public forecasts. Consequently, we anticipate that the second half of 2024 will remain volatile and restrained.
Despite reports to the contrary, Swiss Steel Group maintains regular and constructive contact with all lenders. Swiss Steel Group categorically denies the rumors of insolvency proceedings mentioned in the media reports.