The boss of the troubled metals giant that owns Fort William aluminium smelter has vowed that none of its steel plants will shut “under my watch”.
Sanjeev Gupta, founder of Liberty House Group and chairman and chief executive of GFG Alliance, also revealed that his Liberty Steel business owes “many billions” to its collapsed financial backer, Greensill Capital.
Lochaber Chamber of Commerce (LCC) yesterday described the smelter, which was bought by GFG in 2016 and is part of its Alvance aluminium wing, as a “critical part” of the local community, and said the organisation would continue to engage with the company about any impact the “current challenges” might have on its operations in the area.
UK Business Secretary Kwasi Kwarteng has refused to rule out the prospect that Liberty Steel could be taken into public ownership, saying “all options are on the table”.
Ministers had previously turned down a request from GFG Alliance for a £170 million bailout.
Mr Gupta’s comments came in an interview with BBC Radio 4’s Today programme.
He said the firm was “currently enjoying one of the best markets in steel and aluminium”, and its recent efforts to make “efficiency gains” were delivering “good results”.
“So, as a result, actually, we have a huge amount of interest from new financiers who are willing to back us,” he added.
Mr Gupta said he had launched a project linked to “cash measures” plants are taking “to optimise and conserve and be careful”.
He continued: “Our overall global operations are profitable, we have refinancing offers, we will refinance and we will support our UK business also.
“None of my steel plants under my watch will be shut down.”
Questioned about reports that he faces “winding-up petitions” against some of his UK companies and that “you can’t afford to pay”, he replied: “It is natural to some degree that lenders want to protect their own position.”
GFG said yesterday it had nothing further to add to Mr Gupta’s comments or how the situation affected its operations in Lochaber, where around 170 people are employed at the smelter and it’s associated hydro electric power station.
But a spokesman for the firm highlighted an email Mr Gupta had recently sent to all employees, which said: “Major steelworks in Ostrava (in the Czech Republic) and Galati (Romania) are both operating profitably after successful turnaround efforts, and the Alvance businesses at Dunkirk (France), Lochaber and Duffel (Belgium) are also doing very well.”
In November GFG announced plans to nearly double aluminium production and create up to 70 new jobs in Fort William, with a £94m expansion of its operation there. At the same time it said it was no longer going ahead with a scheme to manufacture car wheels at the site.
Yesterday, LCC chief executive Frazer Coupland said: “Lochaber’s smelter and hydropower station are a critical part of the Lochaber community, providing skilled jobs while also being central to the wider industrial supply chain in the Highlands.
“Local GFG representatives are keeping us informed and we’ll continue to engage with them about any impact the current challenges may have on their plans for the future.”