Swiss Steel Group addresses market speculation following media reports
by David Fleschen

Swiss Steel Group has responded to recent media speculation about its financial situation, sparked by reports in Swiss newspapers NZZ am Sonntag and SonntagsZeitung. These reports suggested the company was facing mounting financial challenges and potential insolvency risks. In response, Swiss Steel’s CEO, Frank Koch, addressed these claims in an interview with Germany’s Frankfurter Allgemeine Zeitung (FAZ), categorically denying any insolvency concerns and clarifying the company’s strategic approach amidst difficult market conditions.
In a formal statement issued on October 24, 2024, Swiss Steel Group acknowledged the economic pressures affecting both the broader steel industry and the company itself. The group has been implementing a rigorous restructuring program since the beginning of the year, achieving key milestones such as the separation from the French subsidiary Ascometal. These measures have led to significant cost reductions across the group, which Swiss Steel considers vital for adapting to the challenging market. Nevertheless, the company expects the second half of the year to remain volatile, with any meaningful recovery in demand anticipated only in 2025.
The recent Swiss media reports raised questions regarding Swiss Steel’s financial health and its ability to meet loan requirements by early 2025. Bank sources cited in NZZ am Sonntag and SonntagsZeitung questioned whether the company could maintain its financial commitments. In his FAZ interview, Koch responded by calling these reports “reckless and dangerous,” pointing out that the company has been working actively to dispel these rumors. He reiterated that Swiss Steel maintains “close and constructive” communications with its lenders, emphasizing that insolvency claims are “categorically false.”
Swiss Steel Group further clarified that, while market conditions necessitate operational adjustments, there are no plans to close any of its plants. Instead, the company will reduce production capacity to align with current demand, particularly given the downturn in the automotive sector. Details on the potential impact on employment were not disclosed. Koch assured stakeholders that these capacity adjustments are part of a strategic effort to secure the company’s long-term stability.
Following a capital increase in April 2024, Swiss Steel gained liquidity essential for ongoing operations, though the company reported an adjusted operating loss (EBITDA) of €21 million in the first half of the year, a contrast to the €70 million profit during the same period in 2023. Despite these figures, Swiss Steel’s leadership underscores that it has made substantial progress in its restructuring efforts, and the company’s current financial position, while challenging, is stable.S
Source and Photo: Swiss Steel Group