UK-based steelmaker Liberty Steel Group has announced its new strategic plan after inking a framework deal with its major creditors to restructure its domestic steel operations.
Accordingly, the company has raised new capital, including a $350 million bond issue by its Australia-based asset InfraBuild and by a $350 million asset-backed loan through BlackRock and Silver Point Finance.
With the help of the new capital, the company will be able to consolidate its UK assets under a new entity with a simpler structure, a strong balance sheet and easier access to third party financing and investment. Liberty Steel also plans to increase its electric arc furnace melting capacity at Rotherham to 2 million mt per year in a quick and cost-effective way.
“Our restructuring agreement now paves the way for a new company structure that will allow us to significantly increase our lower carbon emissions steel production in Rotherham, feeding our network of downstream mills around the country. While we still operate in challenging market conditions, these changes will put our UK businesses in a position to reclaim its leading position as champion of green steel and sustainable industry. With our existing strengths in sustainable UK steel and aluminum production, and our magnetite mining resources in Australia to supply the production of DRI, we are prepared to play a leading role in the UK’s Net Zero strategy, and the development of a clean and thriving UK steel sector,” Jeffrey Kabel, chief transformation officer of the company, commented.