Amid gas support muddle
Steelworks to restart after Liberty seals funding
Liberty Steel has raised funds
Hopes for the future of two steelworks have risen after the GFG Alliance said on Sunday it had agreed a £50 million debt restructuring deal with Credit Suisse.
The funding from the Swiss bank will allow it to restart its Rotherham and Stocksbridge plants in South Yorkshire, and safeguard 600 jobs.
GFG’s Liberty Steel said production will start in October with a plan for output to reach 50,000 tonnes per month as soon as possible.
The workers at the two plants are currently on 80% pay, funded by Liberty, after the UK government’s furlough scheme ended on 30 September.
There has been concern that dramatic rises in the price of energy would prevent Rotherham from reopening this month.
GFG, owned by commodities tycoon Sanjeev Gupta, has been seeking to refinance its web of businesses in steel, aluminium and energy after supply chain finance firm Greensill Capital filed for insolvency in March.