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UK-based GFG Alliance to invest GBP 50 mn; to restart Rotherham electric arc furnace

03:32 PM Oct 11, 2021 | Agencies

GFG Alliance on Sunday announced it will invest GBP 50 million to restart of core Rotherham electric arc furnace in the United Kingdom.

The UK-based GFG Alliance, which also has presence in India, is owned by metals tycoon Sanjeev Gupta.

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GFG will inject GBP 50 million of new funding into Liberty Steel UK (LSUK) to enable the restart of LSUK's core Rotherham electric arc furnace, the group said in a statement issued here.

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The funds will be allocated to LSUK through a new separate corporate entity Liberty Capital, it said adding LSUK will continue to run as normal with funding for growth in working capital approved through Liberty Capital, the statement issued on Sunday said.

The group also informed that "following the collapse of its main lender Greensill in March, GFG and Credit Suisse Asset Management (CSAM) have agreed a debt restructuring for Liberty Primary Metals Australia (LPMA), which comprises its integrated mining and primary steel business at Whyalla and its coking coal mine at Tahmoor."

In 2020, the GFG Alliance announced its foray into the Indian steel industry with the acquisition of Adhunik Metaliks and its arm Zion Steel for about Rs 425 crore.

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