Liberty Steel, part of Sanjeev Gupta’s GFG Alliance, is facing significant challenges as a European subsidiary nears administration due to a €140 million debt. This development follows a London court ruling that the debt is unlikely to be repaid, prompting ArcelorMittal, the world’s second-largest steelmaker, to take legal action against Liberty Steel East Europe.
The court’s decision has raised concerns about the potential impact on Liberty Steel’s operations in Scotland, particularly the Dalzell steelworks in Motherwell and Alvance British Aluminium in Lochaber. These Scottish operations have not filed accounts for several years, adding to the uncertainty surrounding their financial health.
Scottish Liberal Democrat economy spokesperson Willie Rennie has called for both the Scottish and UK governments to develop a plan to address the potential fallout from these developments. “Workers are being badly let down by the failings of Sanjeev Gupta, we must have them at the centre of our thinking,” Rennie stated. He emphasized the need for a strategic approach to safeguard jobs and ensure stability within Scotland’s steel industry.
GFG Alliance has responded by stating that the court ruling pertains to a “long-running commercial dispute” and that they are challenging it through legal means. The company insists that its operations and production remain unaffected by this decision.
As the situation unfolds, there is growing pressure on government officials to provide clarity and support for affected workers and communities. The potential administration of Liberty Steel East Europe underscores the broader challenges facing the steel industry amid financial instability and global market pressures.
