MIR Steel in talks for working capital funding

Thursday, 13 March 2014 17:11:24 (GMT+3)   |   Istanbul
       

Wales-based hot rolled coil (HRC) producer MIR Steel (formerly known as Alpha Steel) has told SteelOrbis that the company is in active discussions with different funding providers for the substantial working capital needs of the plant to enable the proper running of the mill. The company said it is close to finalizing the funding working capital, which SteelOrbis estimates at £80-90 million.
 
MIR Steel emphasized that the plant, although currently idle, is fully maintained and being kept on ready mode and can restart at short notice, while the slab in stock will be able to feed the furnace for the first month.
 
The company’s long-term plan still includes the revamping of the meltshop along with other technical and production improvements, according to MIR Steel.
 
According to some local media reports, Community Trade Union has claimed around 150 workers at MIR Steel had not received their weekly wages for three weeks until one week’s wages were paid on Tuesday, March 11. However, all weekly wages have been paid as of today, March 13, as per the latest statement from MIR Steel.
 
In late February, MIR Steel announced that some of its workforce have been placed on temporary leave but will still be paid half their contractual wages until the company returns to normal production.
 
As SteelOrbis previously reported, once operational the plant is expected to produce 800,000 mt of hot rolled coil per year, with an initial monthly capacity utilization of approximately 40,000 mt. However, the plant has remained idle since summer last year. International steel and minerals group Liberty Commodities has an exclusive tolling agreement with MIR Steel and confirms continuance of this agreement with full support once production starts.

Similar articles

Slab offers rise sharply in Turkey, leaving only a few origins in focus

23 Nov | Flats and Slab

Turkey shows interest in import slab, books cargoes from Malaysia

14 Nov | Flats and Slab

Turkey prefers own slabs over most import options, bids much lower for Russian origin

13 Sep | Flats and Slab

Malaysia’s Eastern Steel works on installing new BF, HRC production to start in H2

09 Mar | Steel News

Slab prices in Asia move up, China and Russia most competitive

01 Mar | Flats and Slab

Russia raises local flat prices, evaluates export opportunities for HRC and slab

09 Feb | Flats and Slab

Energy prices become key factor in European metallurgical market in 2022

03 Feb | Steel News

Slab prices in Asia keep rising amid positive outlook in flats post-holidays

18 Jan | Flats and Slab

Slab prices in Asia on the rise, sustainability questionable

19 Dec | Flats and Slab

Import HRC and slab currently in demand in Turkey

09 Dec | Flats and Slab