On 20 July 2021, the Council of Ministers authorised the Governing Council of the Solvency Support Fund for Strategic Companies (FASEE) to approve the temporary public support operation requested by Tubos Reunidos, S.A.
The aid, approved by the Governing Council of the Fund on 13 July 2021 and authorised by the Council of Ministers on 20 July 2021, was formalised through a participating loan amounting to EUR 112,800,000, which was disbursed in a single instalment. The FASEE was established by the Spanish Government in July 2020 with the aim of providing temporary public support to strengthen the solvency of non-financial companies affected by the COVID-19 pandemic that are considered strategic for the national or regional productive fabric. Beneficiary companies of this temporary public support have a maximum period of seven years to fully repay the participating loans received. The interest rates applicable to the participating loan are those set out in the annex to the Council of Ministers’ agreement of 21 July 2020 and in the European Commission’s Temporary Framework.
With the authorisation of this operation, the procedure governing the functioning of the Solvency Support Fund for Strategic Companies was completed.
The request for temporary public support is framed within the market conditions and the company’s business performance in previous years, which were severely affected by the profound and persistent impact of the COVID-19 pandemic. This situation generated significant uncertainty in the sector and led to the suspension of more than 50% of the investment projects in which the company was involved.
The granting of temporary public support has a positive impact on the company’s accounting equity and enables Tubos Reunidos not only to offset the effects of the health emergency on its balance sheet, but also to implement the actions set out in its 2021–2024 Strategic Plan. Consequently, this temporary aid is essential to support a project and an activity that are critical within the seamless steel tube manufacturing sector in Spain, a sector with 130 years of history that is strategically important for both the regional and national economic and productive ecosystem.
Tubos Reunidos is a key supplier of tubular components required in numerous clean energy projects, including wind energy (mainly offshore), concentrated solar power, geothermal energy, and carbon capture and storage. In addition, the company is actively involved in several research and development projects related to the green hydrogen value chain, particularly in the stages of distribution, storage, and as a potential user in its own industrial processes.
As an electricity- and gas-intensive company, Tubos Reunidos is currently undertaking an ambitious investment phase to continue adapting to the ecological transition. The most significant of these initiatives is the consolidation of its two existing steelworks into a single, more advanced facility which, while maintaining the same production capacity, will generate substantial economic synergies and deliver greater environmental efficiency in terms of energy consumption, raw material use, water usage, and emissions compared to the current situation.
Another noteworthy initiative is the installation of photovoltaic panels on the roofs of its manufacturing facilities in the Basque Country, enabling the company to generate approximately 7–8% of its total electricity consumption from renewable solar energy.
Within the timeframe of its Strategic Plan, the company — firmly committed to climate change mitigation and the circular economy — has set ambitious targets to reduce its greenhouse gas emissions by 20% and its landfill waste by 60%, both measured per tonne of tube produced. To advance towards these objectives, Tubos Reunidos is implementing various measures across its facilities, leveraging process digitalisation, in which, alongside energy efficiency, cybersecurity is also a key priority.
The total authorised aid was executed through a participating loan signed on 22 July 2021 for an amount of EUR 112,800,000.
The funds received have been allocated to ensuring the continuity of the company’s operations by restoring its financial viability, covering its liquidity needs, and executing an investment plan aimed at improving the efficiency of its production plants, promoting digitalisation, and fostering the ecological transition through the reduction of CO₂ emissions. All of this is aligned with the objectives of the European Union and national obligations related to the green and digital transformation, including the EU’s goal of achieving climate neutrality by 2050.
The relative distribution of the expenditure was as follows:
| Concept | % |
|---|---|
| Costs derived from operating activities | 37,9% |
| Non-operating payment* | 62,1% |
*This mainly corresponds to the execution of investments in production plants and digital transformation initiatives included in the Company’s Strategic Plan, as well as debt servicing and financial expenses incurred in the months immediately following receipt of the aid.
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