ONE of the UK’s biggest steel companies has said it has “adequate funding” for its current needs after worries were raised over around 5,000 jobs when one of its main lenders filed for administration.
Yesterday fears were raised over the future of thousands of steel workers – including those in the Hartlepool and the North-East.
Bosses at GFG Alliance, which owns Liberty Steel, met with unions yesterday, saying they were looking for refinancing options after the collapse of Greensill Capital.
Representatives for the National Trade Union Steel Co-ordinating Committee called the meeting with GFG boss Sanjeev Gupta “positive and constrictive”.
“It is clear Mr Gupta intends to secure a refinancing of the debt to provide the business with the necessary liquidity going forward,” they said.
“We recognise Mr Gupta’s desire to see Liberty Steel succeed, and recognise also his personal contribution in giving distressed UK steel assets a new lease of life.”
In a joint statement, Tees Valley Mayor Ben Houchen and leader of Hartlepool Council Shane Moore, said: “Right now our priority is the workers of Liberty Steel in Hartlepool during this time of uncertainty. We are monitoring the situation closely and have held talks with GFG Alliance - Liberty Steel’s parent company.
“Currently, Liberty Steel continues to operate and trade as normal, our number one priority right now is ensuring the 250 local workers who work for Liberty in Hartlepool have their jobs protected.
“Liberty’s Hartlepool pipe mills are the biggest in the UK making them a hugely important strategic asset that, over the past few years, have allowed the plant to land a number of major global contracts. This is testament to the hard work and dedication of the plants hugely skilled workforce and we will do all we can to protect these skilled, well paid jobs.”
Jessie Joe Jacobs, Labour candidate for Tees Valley mayor, said: “This announcement is a real kick in the teeth for our steel workers who have been working throughout the pandemic, making vital materials for the NHS and our food industry. The workers at Hartlepool need answers about what this means for their jobs – and what the Conservative Government is doing to save their livelihoods.
“Steel making is at the heart of our communities and British steel should be at the heart of our post-Covid recovery.
“The industry needs support in this difficult time and nothing should be off the table – including nationalisation.
“The Tories failed our steel workers before, they can’t be allowed to fail them again.”
Greensill filed for administration on Monday after concluding it was unable to meet its debts.
Mr Gupta’s business has faced a 60 per cent drop in demand for some of its products due to the impact of Covid-19 on the aeroplane building sector.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel