The Government approves the rescue of the steelmaker Rugui Steel with 25 million euros

The Government approves the rescue of the steelmaker Rugui Steel with 25 million euros

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The Government approves the rescue of the steelmaker Rugui Steel with 25 million euros

The Council of Ministers authorized this Tuesday the granting of an aid of 25.03 million euros to the steel group Rugui Steel, charged to the Support Fund for the Solvency of Strategic Companies. This amount will be channeled through a participatory loan for the amount of 13.5 million euros and an ordinary loan of 11.5 million. The managing council of this fund of the Sociedad Estatal de Participaciones Industriales (SEPI) previously gave the green light to the operation, the sixth it has carried out since the beginning of the pandemic, after analyzing the economic and legal situation of the company, the impact who have suffered their accounts as a result of the pandemic and the feasibility plan presented.

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According to the Government, the Rugui Group has a “relevant strategic character” due to its impact on employment and the economy, both on a national and regional scale. The steel group is present in the autonomous communities of Castilla y León, Navarra and the Basque Country. In particular, the company is of relevant strategic importance in the province of Soria, specifically in the town of Ólvega, where the only steelworks in all of Castilla y León is located and where almost 40% of the company’s employment is located.

The aid comes from the Fund for Support to the Solvency of Strategic Companies, endowed with 10,000 million euros. This mechanism was approved by the Government in July 2020 with the aim of providing temporary public support to reinforce the solvency of non-financial companies affected by the pandemic that are considered strategic for the national or regional productive fabric.

The Government has also taken into account Rugui Steel’s business plan, which foresees that in 2023 its products will be carbon neutral. In addition, the group has an export profile, since 75% of its sales are made abroad. The new operation joins others already authorized by the Government for Air Europa, Ávoris Corporación Empresarial, Plus Ultra Lineas Aereas, Duro Felguera and Tubos Reunidos.