Mr Sanjeev Gupta Assuages People over Fears of Closures in UK
Liberty Steel owner Mr Sanjeev Gupta has claimed that none of its plants will shut under my watch as he races to refinance his business after the collapse of
Liberty Steel owner Mr Sanjeev Gupta has claimed that none of its plants will shut under my watch as he races to refinance his business after the collapse of financial backer Greensill. Mr Gupta told BBC that “The UK has been a tough journey. It's because the UK steel industry has been decimated for decades. So that journey definitely has been a labour of love. But I'm committed to my UK steel plants. I started them, I believe in them, they have a great future. We've saved thousands of jobs here. We've shown that economically those businesses can work. GFG Alliance is not waiting for anybody and doing what we can to help our businesses. Our overall global operations are profitable, we have refinancing offers, we will refinance, and we will support our UK business also. None of my steel plants under my watch will be shut down.”
He said GFG had been streamlining the business and had a huge amount of interest from new financiers who are willing to back us and refinance the group. He said it would take time to sort things out, but a short-term solution was an initiative called Project Athena which required each plant to make daily reports on how they were conserving cash.
GMB union said Mr Gupta's comments are very welcome but making guarantees without showing financial backing "just raises further questions. GMB national officer Mr Ross Murdoch said “To be able to give these guarantees with such confidence you have to assume he's found the financing required to keep the company going. If that's the case he needs to let people know and stop workers worrying about their jobs."
Liberty Steel has about 3,000 workers at sites including Rotherham, Motherwell and Newport. A further 2,000 work for GFG Alliance in other UK metals and engineering businesses. Mr Gupta was rebuffed by the UK government after asking for GBP 170 million. Some investors have also begun legal action to have parts of his metals group wound up.