Liberty Steel resumes production at UK special steel plant
Liberty Steel has resumed production at its UK special steel plant in Rotherham, the steelmaker said on Tuesday April 6.
Operations at the plant were halted on March 12, the company said.
“We are grateful for the support from our customers and suppliers in enabling the restart and in supporting our self-help measures such as matching our current stock to customer orders and working with customers to achieve terms that will bring in cash earlier,” a Liberty Steel spokesman said.
“The group continues to work on solutions to provide additional working capital facilities to replace the funding gap left by Greensill, and meantime is making use of the furlough scheme,” he added.
In March , raw materials suppliers to Liberty sites in the UK and Europe were said to be demanding cash-in-advance from the company after news emerged about an investigation into Greensill Bank - the key funding facility for Liberty Steel’s parent company GFG Alliance.
On March 3, German financial watchdog Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) imposed a moratorium on Greensill Bank and on March 8, Greensill Capital, the ailing bank’s parent company, filed for insolvency.
Liberty Steel has also been asking for payment upfront for flat carbon steel products to secure cashflow, but buyers have been reluctant to take the risk of making such deals due to concerns over the steelmaker’s financial situation.