Liberty Steel UK (LSUK) plans to reduce steelmaking and mothball
some of its UK assets as part of restructuring
plans. The group instead wants to focus on high-value,
alloy-steel production in order to remain competitive.
“Despite
the injection of £200 million ($244 million) of shareholder capital over the
last two years, the production of some commodity grade products at Rotherham
and downstream mills has become unviable,” Liberty announced in a statement
from Jan. 12. The company went on to cite high energy costs and imports from
countries without the same environmental standards as the primary issues.
Rotherham
is to supply specialty steels via its Stocksbridge and Brinsworth plants, which
make up Specialty Steel UK. This company primarily focuses on the aerospace,
energy, and engineering supply chains.
Restructuring Leaves Steel Output Uncertain
Steps
towards restructuring also include reducing crude steel production at its
Rotherham site in South Yorkshire. Moreover, the organization will source
billet and slab from third parties to continue rolling there and at merchant
bar roller Scunthorpe.
One
company official declined to indicate by how much Rotherham would cut melting.
He also declined to indicate where the site would source semi-finished
products. In the end, the only answer given was that they would come from
“external sources.”
Rotherham
has one 150-metric ton electric arc furnace that can pour roughly 1.22 million
metric tons per year of crude steel, which it casts into ingot. The plant can
also roll 560×400, 140×140, and 180×180 blooms, specialty long steels for the
automotive sectors, and rebar.
Steel Production for Liberty Steel Altered in Numerous Ways
Meanwhile,
Scunthorpe can produce up to 400,000 metric tons per year of merchant bar
products. These include flat, round, and square bar, and steel angles (both
equal and unequal). It also produces steel convex bar, steel beams and
channels, and steel crane rail.
LSUK
will also mothball hot rolled coil producer Liberty Steel Newport in south
Wales, turning it into a sales and distribution hub. That site can roll hot
rolled coil in 980-1,540mm widths and in 1.5-12.5mm gauges. These tend to
supply the construction, automotive pipe and tube, yellow goods, materials
handling, and power sectors.
Liberty
Performance Steel West Bromwich is also set to idle, the company said. “These
actions … may potentially impact up to 440 roles across the business,” the
parent group added. “The company will consult with employee representatives,
trade unions, and UK Government throughout the process.”