Sanjeev Gupta’s Liberty Steel has secured a £50m cash injection, safeguarding 1,000 jobs at its plant in Rotherham and Stocksbridge.
The deal is part of a wider restructuring of GFG Alliance, Liberty’s owner, which was forced to seek funding when its key lender, Greensill Capital, collapsed.
Boost: Sanjeev Gupta’s GFG Alliance said the cash would allow the Rotherham and Stocksbridge plants to reopen this month
GFG Alliance said the cash would allow the Rotherham and Stocksbridge plants to reopen this month after being closed since spring. Community, the steelworkers’ union, said it was ‘overdue’ but was ‘an important step in the right direction’.
Liberty Steel employed 3,000 steelworkers in the UK at the beginning of 2021. But its future was thrown into doubt when Greensill collapsed in early March.
GFG has been struggling to raise new financing since then, while the majority of its workers have been on furlough.
In April, GFG approached the Government for help, but the request was rejected by Business Secretary Kwasi Kwarteng.
