UK-based steelmaker Liberty Steel Group has announced that it has decided to “mothball” its Liberty Merchant Bar plant in Scunthorpe due to the challenging market conditions, especially the lack of local feedstock supply. The company has initiated a consultation process which will begin today, May 8, regarding temporary closure of the plant, which stopped production in 2022.
GFG Alliance has been exploring all possible ways to establish a sustainable business for the plant over the past two years. However, a range of external factors has prevented this, including the high energy costs all UK steel producers face, and the loss of third-party gas supply to the furnaces. Despite providing significant financial support, the products produced at Liberty Merchant Bar plant face competition from imports with lower energy costs and less stringent environmental standards.
According to the company’s statement, the consultation process, in which approximately 127 employees will take part, will last a minimum of 45 days, during which time Liberty Steel will try to achieve a consensus with the workforce.