In July this year, Liberty Commodities had officially confirmed its negotiation and completion of the acquisition of Wales-based hot rolled coil (HRC) producer MIR Steel (formerly known as Alpha Steel) on behalf of a consortium of Dubai-based Indian investors, GT Steel Recycling.
During the SteelOrbis Fall 2013 Conference & 69th IREPAS Meeting held in Istanbul on September 22-24, Gianpiero Repole, commercial director of Liberty Commodities, told SteelOrbis that MIR Steel's plant in Newport will resume its production in mid-October. Liberty is acting as a managing agent for MIR Steel.
MIR Steel, with an annual hot rolled coil (HRC) production capacity of 800,000 metric tons, will restart its production in mid-October, after remaining idle for the past six months. First slabs are arriving from the CIS, said Mr. Repole, who added that the plant's immediate slab inventory will then guarantee production until January while new slabs will arrive in a more timely manner. "The plant is actually a rolling mill, much more flexible in adjusting production than a blast furnace mill, and it will roll approximately 40,000 mt of HRC per month initially. GT Steel Recycling is studying how to revamp the facility over time and improve the quality range before increasing production to a more sustainable level," the Liberty Commodities commercial director said.
The plant will mainly supply HRC to the domestic market, although exports will remain a possibility in case of a market imbalance between supply and demand. In 2012, the UK imported about 537,450 metric tons of HRC and 117,850 metric tons of hot rolled sheet (HRS).
Stressing that MIR Steel is an important player in the economy of Newport and that GT Steel Recycling will invest to modernize the plant and ensure its sustainability over the long term, Gianpiero Repole said, "Many suppliers and service providers have been patient and very supportive of MIR and GT Steel over the past few months, even if there has been no activity. GT has retained all of MIR Steel's original workforce and has paid all salaries even if there was no production. As the mill starts running in October and as all commercial activities resume, the cash flow situation will be fully normalized and all suppliers will be welcomed back with their goods and services. Mark Holmes and Steve Richards have joined the MIR Steel commercial team from Mechel Services, where they were in charge of selling MIR Steel products. This will ensure continuity in MIR's customer services."
"Market response has been quite positive and MIR Steel's customer base is looking forward to its return as it always provided good quality material at a competitive price with a relatively short lead time," he said, adding that today's import offers are for January and February shipments, while MIR Steel is currently offering HRC for November deliveries.
The plant will produce mainly commercial quality HRC, but the possiblity of purchasing slabs for the production of other grades is said to remain open.
