Reports related to this article:
Plant(s): View 1 related plant in PECWeb
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Thousands of jobs are at risk at one of the U.K.'s largest steelmaking operations after the tax authority, HM Revenue and Customs (HMRC), filed petitions to wind-up four companies under the Liberty Steel umbrella for failure to pay taxes owed.
The government body stated that Liberty Steel U.K. (LSUK) (London, England), whose parent company is troubled GFG Alliance (London), owed £26 million (US$35 million) in unpaid taxes following an audit carried out early last year. The four companies under threat are:
It added: "Our experts have advised us that with the right framework of support Liberty Steel can have a sustainable future. The government has an important role to play in providing that framework and must take urgent action to address our unaffordable energy prices. GFG is the owner and we hold them accountable for their actions, but as we have always said government must be ready to step in should that be required."
GFG Alliance, founded by British-Indian businessman Sanjeev Gupta, was on a rollercoaster of major acquisitions in recent years until the beginning of 2021, when its main financing partner Greensill Capital (London) became insolvent, leaving the company with a huge network of businesses but not enough money to run them. Up until Greensill collapsed the company had purchased distressed steel and aluminium assets--up to 50 in a few years--including those formerly owned by British Steel in the U.K., some of ArcelorMittal's (NYSE:MT) (Luxembourg, Luxembourg) European steel assets, Rio Tinto's (NYSE:RIO) (London) Dunkerque aluminium smelter in France, Australia steel producer Arrium (Sydney, Australia), and U.S. steel wire and rod producer Keystone Consolidated Industries (Dallas, Texas). The company employs 35,000 people globally. GFG is also the subject of an investigation by the U.K.'s Serious Fraud Office into suspected fraud, fraudulent trading and money laundering related to its financing and its links to Greensill.
Towards the end of last year, Industrial Info reported that Liberty Steel was in line to receive a life-saving cash injection of £50 million (US$68 million) following the agreement of a financial restructuring plan between GFG Alliance and Credit Suisse Asset Management. The money was to be used to restart the core Rotherham electric arc furnace (EAF). Rotherham is the hub for the company's GREENSTEEL initiative to recycle scrap metal using electric arc furnaces powered by renewable and low-carbon energy. The company is also exploring newer technologies such as hydrogen steelmaking to remove emissions from primary steel production via direct reduced iron furnaces that can feed EAFs. For additional information, see October 25, 2021, article - Liberty Steel Gets Cash Injection to Save U.K. Plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The government body stated that Liberty Steel U.K. (LSUK) (London, England), whose parent company is troubled GFG Alliance (London), owed £26 million (US$35 million) in unpaid taxes following an audit carried out early last year. The four companies under threat are:
- Speciality Steel UK, which employs close to 2,000 people at plants in Rotherham and Stocksbridge in South Yorkshire
- Liberty Merchant Bar at Scunthorpe
- Liberty Performance Steels Ltd at West Bromwich
- Liberty Pipes at Hartlepool in County Durham
It added: "Our experts have advised us that with the right framework of support Liberty Steel can have a sustainable future. The government has an important role to play in providing that framework and must take urgent action to address our unaffordable energy prices. GFG is the owner and we hold them accountable for their actions, but as we have always said government must be ready to step in should that be required."
GFG Alliance, founded by British-Indian businessman Sanjeev Gupta, was on a rollercoaster of major acquisitions in recent years until the beginning of 2021, when its main financing partner Greensill Capital (London) became insolvent, leaving the company with a huge network of businesses but not enough money to run them. Up until Greensill collapsed the company had purchased distressed steel and aluminium assets--up to 50 in a few years--including those formerly owned by British Steel in the U.K., some of ArcelorMittal's (NYSE:MT) (Luxembourg, Luxembourg) European steel assets, Rio Tinto's (NYSE:RIO) (London) Dunkerque aluminium smelter in France, Australia steel producer Arrium (Sydney, Australia), and U.S. steel wire and rod producer Keystone Consolidated Industries (Dallas, Texas). The company employs 35,000 people globally. GFG is also the subject of an investigation by the U.K.'s Serious Fraud Office into suspected fraud, fraudulent trading and money laundering related to its financing and its links to Greensill.
Towards the end of last year, Industrial Info reported that Liberty Steel was in line to receive a life-saving cash injection of £50 million (US$68 million) following the agreement of a financial restructuring plan between GFG Alliance and Credit Suisse Asset Management. The money was to be used to restart the core Rotherham electric arc furnace (EAF). Rotherham is the hub for the company's GREENSTEEL initiative to recycle scrap metal using electric arc furnaces powered by renewable and low-carbon energy. The company is also exploring newer technologies such as hydrogen steelmaking to remove emissions from primary steel production via direct reduced iron furnaces that can feed EAFs. For additional information, see October 25, 2021, article - Liberty Steel Gets Cash Injection to Save U.K. Plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
