Takeover of collapsed steel firm expected to save 250 jobs across sites including Newport
Collapsed steel firm Aartee Bright Bar is set to be merged with Liberty Steel Group after steel tycoon Sanjeev Gupta stepped in to take over the business.
Liberty Steel currently employs close to 200 workers at plants in Newport and Tredegar and last month began implementing a restructuring programme to redeploy workers after energy costs made parts of the business “unviable”.
GFG Alliance, owned by Mr Gupta and his family, has bought Aartee and filed an application to challenge the administration, it revealed on Friday.
GFG said it wants to restart operations in a bid to save the firm’s 250 staff, who operate from two productions sites in Willenhall and Dudley, West Midlands and three distribution and sales offices including the site in Newport.
Over time, the business would be integrated into Liberty’s operations.
Jeffrey Kabel, the chief transformation officer at GFG, said: “Aartee is a significant part of the UK’s steel supply chain and distribution network, and a key customer for GFG’s bar products produced in Rotherham by Liberty.
“Our rescue plan would save 250 viable steel jobs in the West Midlands and across the UK.
“Over time, Aartee’s business would be integrated into Liberty’s operations helping to reinforce our UK transformation plan focused on producing specialist steel products.”
The steelworkers’ union, Community, said the rescue deal is good news for workers and that Aartee seems a “natural fit” for GFG, which has about 35,000 staff in 10 countries.
Alun Davies, Community’s national officer, said: “The news of GFG Alliance’s purchase of Aartee Bright Bar is very encouraging.
“Aartee seems a natural fit for GFG and the acquisition can safeguard jobs and important steel assets.
“While we await further details about GFG’s plans for Aartee, this development will, no doubt, be welcomed by both the Aartee workforce as well as those working across the supply chain.”
Last week, Mr Davies said that Government negligence is to blame for the firm’s collapse, having failed to act on issues like energy costs and procurement.
He said it reflects the extreme pressures the industry is under, with thousands of jobs reliant on the future of the sector.
GFG’s application to challenge administration is being supported by a majority of business creditors, it said.
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