UK-based global industrial leader GFG Alliance, parent company of Liberty Steel, has stated that some of its UK steel businesses will operate intermittently, which will be achieved without compromising the condition of the plants. The company stated that it is working closely with the trade unions and will be making use of the government furlough scheme for employees where possible in those circumstances.
The move is considered to be the result of financial distress due to a possible deal for the acquisition of UK-based financial services company Greensill Capital, the main lender to GFG Alliance, by US-based investment group Apollo Global Management, as SteelOrbis understands. The fact of Greensill not being able to pay its debts anymore was expected to take its toll on the UK steel industry and GFG Alliance.