In a significant move that reshapes the UK steel distribution landscape, ASD Limited has acquired the assets of Atlantic Steel Processing, a Birkenhead-based plate service centre. The acquisition, announced on July 3, 2024, comes after Atlantic Steel faced financial difficulties due to weak demand, leading to its administration earlier in the year. This strategic purchase marks a new chapter for ASD, which operates under the umbrella of Hierros Añon, one of Europe's largest mill-independent steel distributors.
The acquisition includes a valuable site at the Port of Liverpool, which will substantially enhance ASD's presence in the UK's northwest region. This strategic location is expected to provide ASD with improved access to markets in Northern Ireland and the Republic of Ireland, enabling more cost-effective distribution to these areas. The move is seen as a key step in ASD's expansion strategy, allowing the company to strengthen its foothold in these important markets.
As part of the deal, ASD is set to introduce new product lines to its portfolio, significantly expanding its offering to customers. The company will now provide de-coiled hot rolled sheets and reversing mill plate, broadening its range of steel products. This diversification is expected to attract new customers and provide existing clients with a more comprehensive selection of steel products, potentially increasing ASD's market share in the competitive steel distribution sector.
One of the most notable aspects of this acquisition is the expanded capability it brings to ASD. The company now boasts the ability to stock and de-coil 2,500mm wide coils in gauges ranging from 5mm to 20mm. ASD claims that this makes it the only distributor in northern Europe with such extensive capabilities, positioning the company as a leader in the region's steel distribution industry. This unique selling point is likely to give ASD a significant competitive advantage in the market.
The acquisition of Atlantic Steel's assets is part of a larger expansion strategy by ASD's parent company, Hierros Añon. The Spanish group had previously agreed to purchase Klöckner & Co's operations in France, the UK, the Netherlands, and Belgium. This series of acquisitions indicates Hierros Añon's strong commitment to expanding its presence in the European steel distribution market, with ASD playing a key role in this growth strategy.
