Schmolz + Bickenbach announces crisis in the steel market
The world leader in specialty steels, Swiss company Schmolz + Bickenbach announced the crisis in the steel market, reporting that uncertainty in the most important end markets such as the automotive industry has moved beyond the usual cyclicality.
"This led to a crisis in the steel industry, which Schmolz + Bickenbach is unable to avoid," the company's press service said. "Having considered all possible options, the Board of Directors decided to request an increase in capital from shareholders."
Schmolz + Bickenbach plans to raise up to 350 million francs.
It is reported that the company has managed to agree with banks and creditors to temporarily suspend the contractual financial agreements for the third and fourth quarters of 2019.
Schmolz + Bickenbach downgraded its 2019 pre-tax EBITDA forecast to a range of € 70-100 million.
Today Schmolz + Bickenbach is one of the leading suppliers of customized solutions for the long products sector in special steels worldwide. The company is one of the leading manufacturers in the world market and one of the two largest companies in Europe for the production of alloy and high-alloy structural steel.
Schmolz + Bickenbach has over 10,000 employees.