Wales-based hot rolled coil (HRC) producer Liberty Steel Newport has announced that production resumed on Friday, October 16, at its rolling mill in Newport, South Wales, signaling the start of a new era for the 40 year old plant.
In a move that bucks recent trends in the UK steel industry, the Welsh plant has gone back into action more than two and a half years after it was mothballed by its previous owners. International steel and metals group, Liberty House bought the facility in summer 2013 and has retained the 150 staff over the intervening period in order to be ready to restart when market conditions allowed.
Initially the Newport Works will produce approximately 50,000 mt of hot rolled coil per month for the UK domestic market with potential to increase this to 100,000 mt per month, to serve export markets as well. Liberty Steel Newport will also look to reinstate the bar and rod mill that the previous owners sold.
In a market environment where melting steel is not viable in the UK due to the tax policy on the coal based power, Liberty Steel Newport will support green energy and will implement several renewable energy initiatives both at the plant and its neighboring sister company SIMEC Uskmouth Power.
Speaking about future plans, group managing director of Liberty, Sanjeev Gupta, explained, “Once energy prices for UK industry are brought in line with the rest of Europe, we will look to restart the melt shop also to make liquid steel once again. It is inconceivable that the United Kingdom exports scrap that is melted in other countries who then supply steel made from this scrap back here. Until we can make liquid steel again we will import slabs from the most competitive sources available, produce hot rolled coil and service our UK customer base efficiently. Having our own port and our global network and experience as a steel trader and supplier to 32 countries give us a competitive edge which we intend to take complete advantage of.”