London 22/02/2016 - European lead smelter and recycler Recylex will consider the future of its Weser Metal primary lead smelting complex if it fails to renew short- and long-term credit lines that run out in March.
"Unless it receives a financing proposal by the end of the first quarter of 2016, the going concern status of the group's German subsidiaries - and with it that of Recylex SA - could be called into question," the company said in its February 17 annual sales report.
The company is in talks with creditors to renew credit facilities guaranteeing both long- and short-term financial liquidity.
"We have a credit line that ends in March 2016, otherwise there is a potential risk [to Recyclex' German subsidiaries,] especially Weser Metal," communications director Gabriel Zeitlin told FastMarkets.
"We are negotiating both short-term and long-term because our financial panthers do not want to finance the short term without guaranteeing the long-term financial stability of our operations," Zeitlin added.
Weser Metal in Nordenham, Germany, produces more than 140,000 tonnes per year of refined lead as both a primary and secondary smelter. Recylex is the third-largest lead producer in Europe.
Negotiations continue; as things stand the company does not intend to close the smelter but it needs to secure a new agreement to guarantee the future of certain operations.
"If we do not have this financing by the end of March then we will need to consider other options," Zeitlin said.
Premiums for 99.97 percent purity lead ingots are currently stable at $60-70 duty paid free carrier agreement in Rotterdam, with the market in relative balance amid low availability of battery scrap.
(Editing by Mark Shaw)