UK government considers rescue package for second major steel plant | Steel industry

Ministers, next week after the key court case falls into the management of the management of another large steel facility to take steps to take steps to take steps.

Business Secretary Jonathan Reynolds, Sanjeev Gupta’s Liberty Steel group, a part of the Speciality Steel UK (SSUK) is understood to look at what to do to support.

Those who are close to the government’s thought, Reynolds, Rotherham in South Yorkshire and Sheffield in plants in the plants that employ 1,450 people do not take the full control of the work.

The ministers would be the second facility to be governed by the state after seizing the control of the British steel factory under the Chinese owners in Scunthorpe, but it would prove that it is easier to sell special steel plants to a different owner.

A government spokesman said: uz We continue to closely monitor the developments around Liberty Steel, including public hearings, which is a matter for the company.

“It is for the freedom to manage commercial decisions about the future of its companies, and we hope it will succeed with its plans to continue on a sustainable basis.”

Workers’ politicians in Southern Yorkshire are pressing a business secretary for weeks to support more support for plants that lost £ 340 million in four years. Although Liberty Steel continued to pay, Britain had the largest electric arc oven, but Rotherham did not produce anything for a year due to lack of money to buy materials.

The GUPTA, which lists the residence as the United Arab Emirates, controls the control of various enterprises in GFG Alliance, the GFG Alliance, the GFG Alliance, which has been exposed to serious financial pressure since the failure of Greek after collapsing in 2021 after lending about 5bn (3.7bn £) to GFG. Gupta, Greenil’s managers trying to save the money for a long time held talks.

Gupta said that the next week is looking for new investments in SSUK before the court case and said that the union leaders had forward negotiations with a large investor. The court documents announced that the previous talks did not come to anything to sell the company.

The spokesperson of the Union Society said: uz We understand that Liberty has had forward talks with a large investor after the latest discussions with the company. While waiting for more information on this, we are concerned about the situation in SSUK.

“If it is the worst next week, the government will have to take steps to protect the work and strategically important assets.”

Reynolds told the parliament to the parliament last month that the government “closely follows the situation in SSUK and added that TS workers are a national being and that I want to have a strong future as part of our general steel strategy”.

People close to Reynolds, Gupta still refused to put any government money while the company is under the control of the company, but is thought to be more open to the idea of ​​putting money if it loses control after the next week’s hearing.

GFG has been under investigation by a serious fraud office for suspicious fraud, fraudulent trade and money laundering since May 2021.

“GMB strongly supports the government’s intervention to maintain its operations, while determining a sustainable plan to ensure its applicability in one of our key industries.”

A Liberty Steel spokesman: “Liberty Speciality Steel continues to be a valuable job with the right assets and skills. Especially for aviation, defense and energy, we have a strong demand for the steel species we produce.

He added that the government’s industrial strategy, changes in steel import quotas, and “positive trade tail winds, are aligned to increase the demand for high -grade steel products melted with lower carbon emissions than SSUK’s explosion oven alternatives”.

Considering the facilities working on efficient electrical arc ovens, the authorities believe that the government does not stay under the control of operations for a long time and is more attractive for future investors. Finding a potential buyer for aging, polluting scunthorpe blast furnaces are more complex, because they will inevitably need to be upgraded to the cleaner electric arc ovens with at least £ 1 billion.

If Liberty Steel is to be put into the administration, the industrial sources suggested that the government could follow a similar plan when the British Steel’s Scunthorpe site was threatened with closing in 2019. In this case, the government appointed a official buyer to continue the activities while looking for a buyer.