Sahaviriya Steel to Delay Restart of Teesside Plant in U.K.
Unfavorable weather conditions and additional unplanned works are responsible for the company’s inability to restart operations on Jan. 6 as originally scheduled, Phil Dryden, chief executive officer at Sahaviriya Steel Industries UK Ltd., said in a statement today. The resumption should take place at the beginning of next year, he said.
Sahaviriya Steel Industries UK Ltd., a unit of the Thai company, acquired Teesside Cast Products from Tata Steel Ltd. in March for $469 million. The deal includes the purchase of coke ovens, power-generation facilities and the Redcar Blast Furnace. Under the ownership of Tata Steel Ltd. (TATA), the plant ceased operating in February 2010.
The delay isn’t expected to affect Sahaviriya’s sales. The company has prepared raw materials to meet a forecast increase in orders as factories rebuild after Thailand’s worst flooding in 70 years, President Win Viriyaprapaikit said in the statement.
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