Sanjeev Gupta’s Liberty Steel will be idling two plants in the United Kingdom and cutting production at several others on account of high energy prices.
Liberty Steel’s parent company GFG Alliance said that its plant at Newport, Wales and West Bromwich will fall idle soon, while production at its Rotherham plant will be reduced.
In a statement released by the firm, GFG Alliance emphasized that its power supply is the main issue.
“The production of some commodity grade products at Rotherham and downstream mills has become unviable in the short term due to high energy costs and imports.”
GFG Alliance did not indicate whether production at any of its aluminium operations would be curtailed as well.
GFG Alliance has been scrambling to make up lost funding after major financier Greensill suddenly became insolvent in the spring of 2021. The firm is currently in a legal battle to determine ownership of its aluminium assets at Dunkerque and elsewhere after American Industrial Partners (AIP) swooped in and took control upon default on payments on its indebtedness.
Sanjeev Gupta’s group continues to contest the act, alleging that AIP’s foreclosure on the debt was done in a predatory manner. In addition to the civil action, GFG Alliance is under investigation by the UK’s Serious Fraud Office for alleged fraud, money laundering, and fraudulent trading. Another investigation by German authorities is ongoing as well.
