Liberty Steel’s Magona Mill to Stop Production - Reports
According to reports in Italian media, Liberty Steel's Magona rolling mill in Piombino in Italy will halt output from mid-June as it lacks hot rolled coil
According to reports in Italian media, Liberty Steel's Magona rolling mill in Piombino in Italy will halt output from mid-June as it lacks hot rolled coil supply. Reports quoted some market sources as saying that “Regular suppliers to the plant have withdrawn, given the company's financial issues. Magona has been unable to source material elsewhere as the market is tight and some sellers are unwilling to risk selling to the company. Stopping of operations will begin on May 28 with the pickling and rolling lines, with the galvanizing lines to be halted within the first ten days of June. Pre-painting operations will continue as long as stocks last.”
Liberty has informed some of its clients that it is slowing down output. A company spokesperson said "Due to the situation with Greensill, Liberty Magona has faced significant issues with its main supplier of HRC which has impacted its ability to operate at full capacity, even though its market and demand from customers is strong."
ArcelorMittal, from whom Liberty Steel acquired several European assets, including Magona, in order for the former to complete the purchase of Ilva in 2019, had committed supply to those assets under the divestment deal. But when Liberty ran into financial difficulties this year, ArcelorMittal reduced supply to those plants. Reportedly, payments from other Liberty assets to ArcelorMittal stopped, so it halted deliveries to the other sites, including Magona.
Italian metalworking unions Fim, Fiom and Uilm have asked to open an urgent table at the Ministry of Economic Development and to meet the management of the plant in the presence of Mr Sanjeev Gupta
Liberty Steel's Magona rolling mill has capacity for 800,000 tonnes per year of galvanised and pre-painted steel and has over 460 employees