Glencore will sell off some of its zinc assets to pay down debt and SSI UK has shut down its Northeast England Redcar steelmaking facility.
SSI UK, Britain’s second-largest steelmaker, said on Friday it was halting operations at its Redcar plant in England, calling into question the future of its business and putting 2,000 jobs at risk. The company, a unit of Thailand’s largest steelmaker Sahaviriya Steel Industries said a sharp decline in steel prices had hurt its business.
Our own Stuart Burns wrote that since the Thai company purchased Redcar in 2012, it has reportedly already lost $1 billion of its own money propping the operation up and racked up debts of a further billion.
Glencore To Sell Zinc Assets
Substantial amounts of zinc could be released onto world markets, weighing further on fast falling prices, as major producer Glencore PLC implements a plan to liquidate some of its commodity inventories to help pay off debt.