Liberty Magona halts production due to material shortage

Wednesday, 23 December 2020 17:24:26 (GMT+3)   |   Brescia
       

Liberty Magona, based in Piombino, Italy, was forced to halt its plants on December 20 due to difficulties in getting feedstock materials, i.e., raw coils, to produce galvanized and pre-painted steels, sources have told SteelOrbis.

As per existing agreements, the Piombino plant will continue to be supplied with hot rolled coils by ArcelorMittal's plant in Fos-sur-Mer, in France, for five years, while in a second phase Liberty will be able to use products coming from ArcelorMittal’s Romanian plants. However, the Fos-sur-Mer plant is having problems in supplying feedstock material due to the strong increase of demand across Europe. Liberty Magona has the option to procure supplies from other suppliers, but there is a strong shortage of material at the moment all around Europe. However, local sources added that the company has succeeded in signing contracts for supplies that should arrive in the coming period, allowing it to produce during the first half of 2021.

Liberty Magona has a production capacity of 700,000 mt of galvanized and pre-painted steel per year and almost 500 employees. They will be laid off temporarily in the first ten days of January.


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