FULL-SCALE production has recommenced at Sheerness steel mill, despite the company going into receivership.

The 300-strong workforce at Allied Steel & Wire Sheerness has had more than a week of uncertainty since administrators were called in on Wednesday, July 10.

The company, based at Cardiff, where 1,000 jobs are also under threat, had debts estimated at between £50 and £60 million.

Production was initially scaled down, in part due to a lack of scrap steel to recycle.

Joint Administrative Receiver, Roger Oldfield, said: “We have recommenced full-scale production at the Cardiff and Sheerness sites of ASW.

“We are hoping to continue production until the annual holiday, which is due to begin at the end of next week. However, we will keep the situation under review.”

He said production was able to re-open because of a “favourable movement” in the price of ASW’s products.

Administrators are putting together a marketing package for potential buyers.