GFG Alliance, owned by British billionaire Sanjeev Gupta, announced its decision to sell two steel plants in France. The company reportedly appointed French investment bank Rothschild Bank to assist the company in the sale.
The company is looking for potential buyers for its steel plants in Askoval, Saint-Saule and Hayang, Moselle, which it acquired from France Rail Industry last August. The Askoval Steel Works supplies steel semi-finished products to the Hayang plant, where they are converted into rails.
The annual production capacity of the plant in Askoval is about 600,000 tons of steel blooms, billets and other forged products. Meanwhile, the Hayang facility produces over 300,000 tonnes of rails per year, mainly for customers including SNCF, the country's national rail operator, and RATP, the operator of the Paris Metro's train system.
The GFG Alliance recently established a Restructuring and Transformation Committee (RTC) to look into restructuring operations, focusing only on the core profitable divisions and completing work to fix or sell underperforming divisions.
Sanjeev Gupta's company faces a funding crisis following the bankruptcy of its main lender, Greensill Capital.