MIR Steel in talks for working capital funding

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.