{"id":3727,"date":"2021-10-24T14:04:35","date_gmt":"2021-10-24T18:04:35","guid":{"rendered":"https:\/\/blogs.shu.edu\/stillmanexchange\/?p=3727"},"modified":"2021-10-24T14:04:35","modified_gmt":"2021-10-24T18:04:35","slug":"liberty-steel-cash-injection-to-save-660-jobs","status":"publish","type":"post","link":"https:\/\/blogs.shu.edu\/stillmanexchange\/2021\/10\/24\/liberty-steel-cash-injection-to-save-660-jobs\/","title":{"rendered":"Liberty Steel Cash Injection to Save 660 Jobs"},"content":{"rendered":"

Radha Patel<\/strong>
\nInternational Business Section Editor<\/strong><\/em><\/p>\n

In an effort to evade job loss of employees at its Rotherham plant in the UK, Liberty Steel, a global steel manufacturing and mining company, has received an injection of nearly $70 million (\u00a350 million) in shareholder funds into the company.\u00a0 This comes after the company\u2019s major financial service lender, Greensill Capital, filed for insolvency protection earlier this year. These funds will be issued through a separate corporate entity called Liberty Captial.\u00a0<\/span><\/p>\n

Liberty Steel\u2019s owner, GFG Alliance, has been struggling to finance its UK operations since February and has been battling unpaid debts.\u00a0 However, it was planning to reopen its Rotherham plant this month after being closed since last spring, which would hopefully help to bring the company back on track.\u00a0 In fact, it plans to accelerate production to meet a 50,000-ton target each month.\u00a0 GFG Alliance\u2019s Chief Transformation Officer, Jeffrey Kabel, said that the injection of funds is important for the \u201crestructuring and transformation\u201d of the company.\u00a0 This is especially important because earlier, the government had rejected GFG Alliance\u2019s owner, businessman Sanjeev Gupta, from receiving emergency funds.\u00a0 The company\u2019s Steelworker\u2019s Union called Community, remarked that this addition of money should have happened earlier, but is still a \u201cstep in the right direction\u201d.\u00a0\u00a0<\/span><\/p>\n

\"\"
Pictured above is the Liberty Steel Rotherham plant in the UK (Photo courtesy of Google Images)<\/em><\/strong><\/figcaption><\/figure>\n

After Greensill Capital collapsed, the majority of workers were temporarily laid-off due to GFG Alliance\u2019s inability to secure sufficient funding for workers\u2019 salaries, among other expenses. Liberty Steel\u2019s Rotherham plant currently has approximately 660 workers, a large portion of the total 3000 steelworkers employed by Liberty Steel in the UK at the beginning of 2021.\u00a0 The 660 remaining workers will now be able to keep their jobs as a result of these new funds. GFG requested help from the government, however, they were denied by Business Secretary Kwasi Kwarteng. This was met by criticism by members of the larger UK steel sector. A spokesperson from industry body UK Steel commented, \u201cThe 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.\u201d According to sources from within the industry, the government has not been doing its part to prevent a steel crisis while the situation is still somewhat manageable.\u00a0 This could ultimately have a large-scale impact, not only on the UK\u2019s economy but also on the global economy. The stability of the Liberty Steel company will be observed in the months ahead.<\/span><\/p>\n

 <\/p>\n

Contact radha.patel3@student.shu.edu<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

In an effort to evade job loss of employees at its Rotherham plant in the UK, Liberty Steel, a global steel manufacturing and mining company, has received an injection of nearly $70 million (\u00a350 million) in shareholder funds into the company. This comes after the company\u2019s major financial service lender, Greensill Capital, filed for insolvency protection earlier this year. These funds will be issued through a separate corporate entity called Liberty Captial.\u00a0<\/p>\n","protected":false},"author":5014,"featured_media":3736,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[868,10],"tags":[546,962,54,237],"class_list":["post-3727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-international","tag-546","tag-liberty-steel","tag-october","tag-united-kingdom"],"_links":{"self":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts\/3727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/users\/5014"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/comments?post=3727"}],"version-history":[{"count":4,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts\/3727\/revisions"}],"predecessor-version":[{"id":3828,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/posts\/3727\/revisions\/3828"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/media\/3736"}],"wp:attachment":[{"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/media?parent=3727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/categories?post=3727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.shu.edu\/stillmanexchange\/wp-json\/wp\/v2\/tags?post=3727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}