Liberty Steel has announced a strategic plan for its steel assets in the UK after signing a new framework agreement with its major creditors.

The agreement was made possible after the company made significant progress in raising new capital, including a $350 million bond issue and a $350 million asset-backed term loan.

Following the final settlement, Liberty plans to consolidate its UK steel business under a new legal entity and corporate structure. The existing companies will transfer their assets and employees to the new entity.

As part of the new plan, Liberty intends to increase the electric arc furnace smelting capacity at its Rotherham facility to 2 million tons per year.

The operational restructuring implemented last year has helped stabilize operations and improve business performance, focusing on specialty steel products for strategic supply chains.

The new company structure will enable Liberty to significantly increase its production of low-carbon steel in Rotherham, which will be supplied to its network of steelworks across the UK.

Liberty's chief transformation officer stated that the company is ready to play a role in the UK's Net Zero strategy with its strengths in stable steel and aluminum production, as well as magnetite resources in Australia to support DRI production.