Sheerness steel plant to restart as Thamesteel exits administration
12 Jun 2012
Sheerness, UK – Thamesteel Ltd has been sold out of administration to a new company owned by the Al-Tuwairqi Group (ATG), joint administrators for the Sheerness steel producer announced 8 June.
Thamesteel voluntarily entered administration on 25 Jan, several weeks after halting production at its plant on the Isle of Sheppey in Kent. Around 350 workers were made redundant as a result of the move, with just 50 kept on to maintain the plant.
The company, which reported a turnover of £200 million at the end of 2010, ran into financial difficulties due to the negative conditions in the market and the global economy.
New Saudi-based owner ATG was expected to restart steel production at the Sheerness facility, and reemploy many of the jobs lost when the company entered administration.
This sale concludes a long and painful process for all involved, according to joint administrator Rod Weston of accountancy firm Mazars.
“At many points we feared the eventual outcome might be very bleak for the future of steel production on the Island,” said Weston. “However, after several false dawns, we have secured a sale to the only bidder to come forward with the intention of restarting production at the plant.”
