Tubos Reunidos is confident of returning to profit throughout 2023 with the recovery of the market

Tubos Reunidos is confident of returning to profit throughout 2023 with the recovery of the market

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The company has an order book of 230 million and is about to concentrate its steelworks production in Amurrio

Manuel Alvarez

The Álava-based company Tubos Reunidos may return to the path of profit next year, after going through a severe crisis for several years that has even led to a rescue by the State, with the injection of 113 million euros. The heads of the company today expressed their “moderately optimistic” view of the future of the business during the shareholders’ meeting, hand in hand with an order book totaling 230 million euros and a market recovery in the energy sector that is evident, as well as the confidence that many investments in generation plants will be accelerated in the short and medium term, since these types of installations require the seamless tubes produced by the firm.

The president of the company, Francisco Irazusta, has highlighted that in recent months the company has already entered positive ebitda, “which means an injection of liquidity in cash” and allows the plan outlined to recover the positive sign in the net result. Irazusta has indicated that this return to profits will take place “throughout 2023”, although he has expressed his doubts that the total result of next year may be of benefit. Last year the company reaped losses of 64.7 million euros.

The Alava-based company now has to battle with the increase in the prices of raw materials -particularly scrap metal-, as well as with the rise in the cost of electricity and gas, which play an important role in the production process of steel tubes. The market, however, has shown signs of recovery – the president highlighted – as a result of the increase in investments in the exploitation of new gas and oil wells, as well as the acceleration of investments in electricity production plants, both gas as nuclear. The company also has high hopes for the growth of investment projects that will be linked to hydrogen, although this will be in the medium term since the technology is not yet mature. Both Irazusta and the CEO, Carlos López de las Heras, highly valued the normalization of the United States market, after the Biden Administration replaced the tariffs imposed by Donald Trump with a quota system. In addition, the United States has applied anti-dumping measures to tube producers that compete with the company from Alava.

Steel mill in Amurrio

On the other hand, the group is about to complete one of the most important operations in its transformation process, by concentrating steel production in the Amurrio facilities and thus closing the Sestao steelworks, of the former subsidiary Productos Tubulares. The company has reported that by the end of the year it will be ready to produce all the main product in Amurrio, which will allow it to “go from having two fifty percent steelworks to having one one hundred percent” in relation to its utilization capacity. The group agreed with Sepi on a set of investments totaling 60 million euros, which are intended not only to improve its profitability by concentrating steel production, but also to expand the range of tubes that it is capable of bringing to market .

The investments and the new industrial plan also incorporated labor measures that were agreed with the unions. Among them, the early retirement of 60 workers, as well as the transfer of 80 people from the Sestao Steelworks to the Amurrio factory, which will be completed by the end of this year.

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