Liberty Steel’s decision to shut operations at its India plants has sparked speculations that the action is part of efforts by the company to preserve cash. However, the company spokesperson clarified that the plants have been idled on account of scheduled maintenance activities and is no way related to the financial issues faced by the company in other geographies. Moreover, he announced that all of its operations are running as normal.
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The steel conglomerate has been hit with financial crisis at its global operations following its main lender Greensill Capital filing for insolvency. It had recently announced that production has been halted at some of its UK plants. For instance, nearly 660 employees at its Rotherham plant have been asked not to report for duty until mid-April. Also, GFG Alliance, which owns Liberty Steel, had announced that some of the plants would be ‘operating intermittently’.
The company had acquired the troubled Indian assets of Adhunik Metaliks and Zion Steel, thereby gaining access to the country’s growing steel market. The acquired facilities located in the state of Odisha, have a combined production capacity of approximately 1.4 million tons of steel per year.
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