UK Steel Mill Closed For Two Years Reopens
In the midst of a crisis summit being held to help the UK steel industry, a steel mill located in south Wales is reopening after being out of operation for more than two years. However this good news may not have been so good due to the fact that most closed steel mills have a low chance of reopening.
“Steel mills are almost impossible to revive once they have shut down,” said Sanjeev Gupa, the managing director of the steel mill’s owner Liberty House, in an article in The Guardian.
Liberty House helped ensure a reopening by paying the 150 employees half of the salaries while the mill was closed. “Some of these guys had been there for decades and if we had lost them it would have been almost impossible to restart,” Gupta continued.
Liberty House bought the steel mill in July 2013 and the reopening of the 41-year-old site is good news for the steel industry – which has been declining due to cheap imports, strength of the pound and increasing energy prices. The mill, Liberty Steel Newport, will import steel slabs to be processed into coil steel used for fencing, crash barriers and other steel products.
The opening comes right in the middle of a summit being held in Rotherham that will focus on the future of the steel industry.