Liberty Steel announces plan to restructure Specialty Steel UK

Liberty Steel has announced a transformational restructuring plan for its Specialty Steel UK (SSUK) division, marking a major milestone in the company's turnaround strategy. This initiative aims to ease the company's debt burden and position SSUK for future growth.

The plan received support from major customers, ensuring stability of SSUK's order book during the transition period. It is noteworthy that the restructuring will not affect the level of employment in the division.

Jeffrey Cable, Liberty Steel's chief transformation officer, said the plan was needed to create a strong, specialist business that would allow the company to focus on high-quality products for the aerospace, defense and energy industries.

“Having made significant progress in stabilizing the business and refocusing it on high-quality specialty products, we are now addressing the company's debt issues to build a stronger specialty business for the future.”

Jeffrey Kabel, Liberty Steel Group's chief transformation officer, said: "Our plan, supported by customers, is the best path forward for all stakeholders, and we are confident that we will receive the support of our lenders for the key actions required to complete the turnaround of SSUK."

The proposed changes will be submitted to creditors in court, giving them the opportunity to vote on the plan, which is critical to preventing insolvency and ensuring long-term viability.

SSUK operates from sites including Rotherham, Stocksbridge and Brinsworth and produces high quality steel.

The company, part of Sanjeev Gupta's GFG Alliance, was hit by the collapse of Greensill, GFG Alliance's main financial backer, as the company signed a framework agreement with major creditors at the end of March to combine its UK steel business under a new entity.

Platts, part of S&P Global Commodity Insights, priced UK HRC at £520/t DDP West Midlands on November 7, up £5 on the week.