Tubos Reunidos is negotiating alliances for expansion in the Middle East and Southeast Asia
Tubos Reunidos is looking at 2024, half of its strategic plan, as a transition year during which it will need to work on several goals: to grow in the market and solve new problems through alliances in the Middle East and Southeast Asia, to gain financial autonomy and continue to reduce of its activities. debt and increase production of its high-performance, low-emission products to advance decarbonization and the energy transition.
The Basque manufacturer of welded steel pipes faces a difficult geopolitical context ahead, as well as the upcoming US elections, which Donald Trump could win again, and low demand due to stockpiles. However, Tubos Reunidos foresees a recovery in the second half of the year and hopes to end 2024 with a portfolio of around 150 million, 40% higher than the current one.
Tubos Reunidos faces 2024 with strengths as activities single steel mill which managed to increase its efficiency thanks to innovationwith the launch of a range of low emission lamps and their reduction total debt 106.7 million euros through the repurchase procedure.
On the other hand, its activities take place in a complex geopolitical context, with low demand it makes extend Erte its factories in Amurrio and Trapaga until July 31st.
Still, the timing is good for Tubos Reunidos, according to its non-executive president Josue Calvo and CEO Carlos Lopez de las Heras. “2023 was an impressive year and we surpassed 2022 with net income of $100 million. This legacy situation puts us on another levelto which are added other milestones in the field of industry and positioning.
Thus, although the leaders of the Basque group expect transitional year 2024expect demand to recover in the second half of the year, which will lead to an increase in the current order book of more than 100 million by 40% to about 150 million. “We have a stable portfolio, but we strive to increase it within 30-40%. We do not need a volume of 300 million in fiscal year 2022 because our strategy is to compete in flexibility,” explains López de las Heras.
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The President of Tubos Reunidos commented on the situation. four vectors they are currently working on: Increase commercial activity and enter new markets, prioritize premium and low-emission products, achieve financial autonomy and advance the energy transition.
Regarding new markets, Josue Calvo noted: “growing consumer regions such as the Middle East and Southeast Asia“And they said that they want to join through alliances. “We have initiated contacts, but we cannot announce anything yet,” he said.
The manager also noted the need gain financial independence and improve operational efficiency. In this sense, he recalled the debt reductions carried out in 2023 and early 2024, “which puts us in stronger positionbut the debt level is still higher than we would like.” Moreover, he stated that “we are undergoing some operations that will allow us to reduce debt”.
The next general meeting Tubos Reunidos took place today to BilbaoWhere Annual reporting for the 2023 financial year was approved.. Tubos Reunidos is a company whose shares are listed on the Spanish stock market. more than 130 years of history. The group has four production units in Amurrio and Zubillabid (Alava), Valle de Trapaga (Vizcaya) and Texas (USA).