ANNOUNCEMENT 13 Mar 2018

On 13 March 2018, the Instituto de Crédito Oficial (ICO) announced providing financing to support a Spanish company's steel manufacturing plant in the United States.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Instituto de Crédito Oficial, press release of 13 March 2019, ICO will contribute to the funding of the new lines at the Acerinox plant in the United States: ico.es/web/ico_en/press-release/-/blogs/the-official-credit-institute-ico-will-contribute-to-the-funding-of-the-new-lines-at-the-acerinox-plant-in-the-united-states?_33_redirect=https%3A%2F%2Fwww.ico.es%2Fweb%2Fico_en%2Fpress-release%3Fp_p_id%3D33%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Dcolumn-2%26p_p_col_pos%3D1%26p_p_col_count%3D2%26_33_advancedSearch%3Dfalse%26_33_keywords%3D%26_33_delta%3D5%26p_r_p_564233524_resetCur%3Dfalse%26_33_cur%3D5%26_33_struts_action%3D%252Fblogs%252Fview%26_33_andOperator%3Dtrue
Instituto de Crédito Oficial: https://www.ico.es/en/web/ico_en/mission-and-functions
North American Stainless (NAS): https://www.northamericanstainless.com/about/

Inception date: 13 Mar 2018 | Removal date: open ended

Financial assistance in foreign market

On 12 March 2018, the Instituto de Crédito Oficial (ICO) signed a financing agreement with Spanish Acerinox having a total value of EUR 100 million (approx. USD 123.4 million). The loan will support the North American Stainless' project concerning establishing two new production lines in order to increase the production of bright finish stainless steel and expand the product range of the company's final goods. The two new lines are a: "BA-finish bright annealing line and a cold rolling mill".

North American Stainless is an American subsidiary of the Spanish Acerinox Group. In this context, the CEO of Acerinox state in a press release: "this agreement will enable us to reaffirm our leadership in the US market and increase our competitiveness".

Instituto de Crédito Oficial is a state-owned bank whose function is to promote "economic activities contributing to growth, the development of the country and improving the distribution of the national wealth." Among other activities, the bank manages Spain's official funding instrument to promote Spanish exports and development aid.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory. 

AFFECTED SECTORS