Meltdown? Turmoil at UK steel empire stokes job fears

Meltdown? Turmoil at UK steel empire stokes job fears

LONDON: Sanjeev Gupta's Liberty Steel company-one of the world's largest steel empires-faces an uncertain future after announcing plans to sell three of its UK plants. Liberty employs 3,000 UK workers and parent company Gupta Family Group (GFG) Alliance has 35,000 employees around the world, with metalworks and mines in Europe, the United States and Australia. Gupta was once seen as the saviour of British steelmaking but is now fighting for survival following the collapse of its main lender Greensill Capital and fraud allegations.

The Indian-British billionaire has insisted none of his 12 UK sites will close. Yet this week's decision to sell three plants in northern and central England plunges 1,500 jobs into uncertainty and comes after three of GFG's French auto parts factories sought bankruptcy protection last month. Clive Royston, who represents the Community trade union at Liberty's Stocksbridge site in northern England, said he wants Liberty to be a "responsible seller“ and find a buyer who will "not just strip off assets“. "We're worried and don't have any details. It's hard because they (workers) are asking questions and I can't answer,“ he said.

Liquidity crisis

Supply chain finance firm Greensill contributed to GFG's expansion through short-term corporate loans and avoided the