Liberty Steel owners say they have 'adequate funding' after fears for 250 Hartlepool jobs
Liberty Steel bosses say its parent company is ‘operationally strong’ despite its main lender going into administration.
In a statement released on Tuesday, March 9, GFG Alliance said Greensill Capital filing for administration has created a ‘challenging situation’ but stressed the business currently has adequate funding.
The development with Greensill has sparked fears for 5,000 GFG Alliance UK jobs including 250 employed at Liberty Steel’s Hartlepool pipe mills in Brenda Road.
GFG Alliance said: "As part of the prudent steps we are taking to manage cash, we are discussing new opportunities with customers and suppliers to improve cash flow and looking to secure additional working capital facilities to support the business.
"We also continue to use the furlough scheme to support employees affected by the weakness in the aerospace market.
“We will continue to work closely with the unions and our employees to identify the most effective ways of supporting the business and preserving jobs.
“GFG Alliance as a whole is operationally strong and we are benefiting from a thirteen year high in steel prices as well as strong markets in aluminium and iron ore."
GFG Alliance said chairman and CEO Sanjeev Gupta had a productive meeting with unions to discuss plans to make the parts of the UK businesses more financially sustainable and address the Greensill disruption.
It added: “Through our global efficiency drive we’ve improved our operations’ margins with most of our major businesses generating positive cashflows.
“Discussions to secure alternative long-term funding are progressing well but will take some time to organise.
"While this takes place we have asked all of our businesses to manage cash carefully.”