Following on from the news this morning that Greensill Capital had gone into administration, a statement has been issued by Sanjeev Gupta, executive chairman of the GFG Alliance following his meeting with the unions. We now print that statement, in full, unedited.
GFG Alliance Statement – Meeting with UK Unions
Sanjeev had a productive meeting with the unions today to discuss the plan to make the parts of the UK businesses facing weak market conditions more financially sustainable and address the disruption caused by the situation at Greensill.
LIBERTY Steel Group has provided significant support to the UK speciality steel business which has seen the demand for some products fall by 60% following the downturn in the aerospace sector due to Covid-19. 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. While Greensill’s difficulties have created a challenging situation, we have adequate funding for our current needs. 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.
We thank our employees, customers and suppliers for their continued support.