Liberty Steel’s Indian plants are planned to go under maintenance, according to a media report. The steelmaker had acquired erstwhile Adhunik Metaliks and Zion Steel to set up its presence in India. Liberty Steel has either paused or curtailed operations at its UK plants as it is facing a cash crunch.
Reports about the company coming under financial distress started floating after one of its investors, Greensill Capital filed for insolvency on March 8.
At present, the company’s annual steel production capacity through the Adhunik Metaliks plant is 500,000mt. The annual capacity at the erstwhile Zion Steel plant is around 400,000mt.
Liberty, as a part of its capacity expansion plan, was looking to take Adhunik’s capacity to 1mn mt. It had also planned to expand its geographical horizons in India by setting up a plant with the Andhra Pradesh government in the Kadapa district. But with the company looking to refinance its operations after Greensill’s insolvency, it remains unclear if these projects will take off as scheduled.