Severstal to shut UK wire mill
MOSCOW. Jan 18 (Interfax) - Severstal has decided to shut its Carrington Wire plant, capacity 100,000 tpy, in the British town of Elland, the Russian steel group said in a statement.
Severstal's hardware unit, Severstal-Metiz, bought Carrington Wire Ltd in April 2006. It is being shut down because it is operating at a loss due to plummeting demand in the UK and the high local input, energy, labor and distribution costs. Severstal-Metiz might now supply clients based in the UK from its Russian plants.
Carrington Wire will shift its remaining inventory and its equipment will be moved to Russia. Real estate will be put up for sale.
Severstal said it thought about selling the plant towards the end of last year, but that it received no proposals that suited all parties, including management and 86 staff.
Severstal-Metiz also includes the Cherepovets, Volgograd and Oryol hardware plants in Russia, and Dniprometiz in Ukraine. It produces more than 1 million tonnes of hardware per year.
Severstal has assets in Russia, North America, Europe, Ukraine and Kazakhstan. The general director, Alexei Mordashov, owns more than 82% of the company. The free-float is around 18%.