British billionaire Sanjeev Gupta's GFG Alliance will provide £ 50 million in new funding to restart steel production in Rotherham, UK. This is stated in Company message on Sunday night.
I am pleased to report significant progress in the global restructuring of the GFG Alliance ... The funding we are pouring into Liberty Steel UK gives it a strong position for business transformation and debt restructuring. The next phase of our global refinancing will be Europe, where a significant number of new lenders will express interest in refinancing our steel assets, ”said Jeffrey S. Stein, director of restructuring at the GFG Alliance.
The capital injection will allow Liberty Steel UK to resume production at its electric arc furnace at the GREENSTEEL Rotherham plant, which offers the opportunity to expand scrap steel smelting for emerging markets such as infrastructure and mechanical engineering. The ramp-up of production will begin in October 2021 and it is planned to increase it to 50,000 tons per month in the near future. The reopening of Liberty Steel UK will support its plan to expand its production facilities in Rotherham, creating a GREENSTEEL plant with a capacity of 2 million tonnes of green steel per year.
"The funding commitments we are making at Rotherham will save jobs, allow us to benefit from good prospects for our core sectors and lay the foundation for a sustainable UK business that will create skilled jobs in industrial communities." - commented on the event himself Sanjeev Gupta.
The investment will also allow the special steel divisions (Stocksbridge, Narrow Strip, Performance Steel), which produce steel components for demanding aerospace and energy applications, to pursue targeted steel production for key customers, the GFG Alliance press office summed up.