London Daily

Focus on the big picture.
Friday, Oct 24, 2025

Liberty Steel cash injection to save 660 jobs

Liberty Steel cash injection to save 660 jobs

Liberty Steel has secured a £50m cash injection which it says will safeguard 660 jobs at its plant in Rotherham.

The deal is part of a wider restructure of GFG Alliance, Liberty's owner, which was forced to seek funding when its key lender, Greensill Capital, collapsed.

GFG Alliance said the cash would allow the Rotherham plant to reopen this month after being closed since spring.

Community, the steelworkers' union, said it was "overdue" but was "an important step in the right direction".

Jeffrey Kabel, GFG's chief transformation officer, said: "The injection of £50m of shareholder funds into Liberty Steel UK is an important step in our restructuring and transformation.

"It will help to create sustainable value, ensure that Liberty has the ability to raise and deploy capital quickly in the UK and enable our businesses to demonstrate their potential and agree long-term debt restructuring."

At the beginning of the year, Liberty Steel employed 3,000 steelworkers in the UK.

But its future was thrown into doubt when Greensill collapsed in early March. GFG has been struggling to raise new financing since then, while the majority of its workers have been on furlough.

In April, GFG approached the government for help, but the request was rejected by Business Secretary Kwasi Kwarteng.

GFG, one of the UK's largest industrial groups, is owned by businessman Sanjeev Gupta.

A further 2,000 people work at other GFG steel sites in the UK.

GFG said the cash injection would allow Liberty Steel (LSUK) to restart its electric arc furnace at Rotherham.

"Production ramp-up will commence in October 2021 with a plan to reach 50,000 tonnes per month as soon as possible," it added.

"The restart of operations will enable colleagues to return to work, setting the platform for LSUK's longer-term refinancing and delivery of its plan to expand Rotherham's capacity, creating a two million tonnes per annum green steel plant."

News of the move was welcomed by industry body UK Steel.

A spokesperson said it was "really good news for not only the company, but those many thousands of workers and their families, the communities where those jobs a located and of course the whole of the UK steel sector".

"Our friends at Liberty Steel can now fire up those furnaces, make the steel that this economy needs and most importantly give some certainty to the well-paid and highly-skilled workforce."

But the spokesperson added: "The last thing the sector needs now is for government to merely sit on its hands and risk an energy crisis becoming a steel industry crisis."

UK Steel called on Prime Minister Boris Johnson to intervene on the industry's behalf "before it is too late".

Huge challenges


Roy Rickhuss, general secretary of Community, said the deal "demonstrates that GFG can raise funds for the UK".

"Huge challenges remain," Mr Rickhuss said. "But the workforce is ready to get back to making the best steels money can buy and the £50m injection will enable us to restart steelmaking."

Meanwhile, plans are proceeding to sell off GFG's Speciality Steel business, which employs about 750 staff at plants in South Yorkshire.

GFG said the cash lifeline would help Speciality Steel to "establish a stable operating environment and create an attractive asset".

Further afield, GFG said it had also agreed a debt restructuring for Liberty's Australian division with Credit Suisse Asset Management.

Greensill's heavy exposure to Mr Gupta's business had prompted Credit Suisse to freeze withdrawals from up to £10bn worth of funds held as security.

Newsletter

Related Articles

0:00
0:00
Close
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
×