Severstal-Metiz, a subsidiary of Russian steelmaker Severstal, has announced its decision to close its British wiremaking plant Carrington Wire due to losses related to the contraction of the steel wire market.
Severstal-Metiz aquired Carrington Wire's Elland plant in West Yorkshire in April 2006. However, in recent years, the consumption of hardware in UK declined by over half, leading to the negative financial performance of the company.
In its statement, Severstal-Metiz said, "During the last years we have worked to improve the effectiveness of the company. The financial support and the consolidation of manufacturing at Carrington Wire have improved the situation, but, unfortunately, did not return the business to profitability. Following a full review of the business and a two-month period of consultation with employees, a decision was taken for the closure of Carrington Wire."