Friday, Jun 08, 2012
By Alex MacDonald
LONDON--Thamesteel Ltd. has been taken out of administration following the sale of the U.K. producer to a company owned by Saudi-based Al-Tuwairqi Group, the joint administrators of the steelmaker said Friday.
Thamesteel went into administration in January following a protracted slump in steel demand stemming in part from the European sovereign debt crisis, which has taken its toll on the economy of the European Union 27-member bloc.
Thamesteel, based in southeast England, employed about 400 workers, and has a production capacity of 840,000 metric tons of billet and 600,000 tons of bar rod.
Joint administrator Rod Weston, of accountancy firm Mazars, said: "At many points we feared the eventual outcome might be very bleak for the future of steel production on the Island. 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."
-Write to Alex MacDonald at alex.macdonald@dowjones.com
(END) Dow Jones Newswires
08-06-12 1008GMT
