Liberty Steel has announced a transformative restructuring plan for its Speciality Steel UK (SSUK) division, marking a significant milestone in the company’s recovery strategy. This initiative aims to alleviate the company’s debt burden and position SSUK for future growth.
The plan has garnered support from major customers, ensuring stability in SSUK’s order book during the transition. Notably, the restructuring will not affect employment levels within the division.
Jeffrey Kabel, Liberty Steel’s Chief Transformation Officer, emphasized that the plan is essential for creating a robust specialty business, allowing the company to focus on high-value products for the aerospace, defense, and energy sectors.
“After making significant progress to stabilize the business and refocus it on high value specialist products, we’re now addressing the debt position of the company to create a stronger specialty business going forward.”
Jeffrey Kabel, Chief Transformation Officer of Liberty Steel Group, said: “Our plan, which is backed by customers, is the best route forward for all stakeholders and we’re confident in winning the support of our creditors for the essential actions required to complete SSUK’s recovery.”
The proposed changes will be presented to creditors through a court process, offering them a chance to vote on the plan, which is critical for avoiding insolvency and fostering long-term viability.
The SSUK division operates across sites including Rotherham, Stocksbridge and Brinsworth and it produces high value steel.
The company, part of Sanjeev Gupta’s GFG Alliance, was hit by the collapse of Greensill, that was the principal financial backer of GFG Alliance with the company that at the end of March signed a framework with its major creditors to consolidate its UK steel businesses under a new entity.
Platts, part of S&P Global Commodity Insights, assessed UK HRC at GBP520/mt basis DDP West Midlands Nov. 7, up GBP5/mt on the week.
