On Thursday 13th August British billionaire Sanjeev Gupta bought a hydro-powered smelter in northern Tasmania, saving some 250 jobs at the facility.
Owner South32 disclosed that it had entered into a binding agreement to sell the facility to GFG Alliance, which is chaired by Gupta. The facility will be now be part of GFG Alliance’s Liberty Steel Group and Gupta said the acquisition would help his goal of becoming a carbon-neutral steelmaker by 2030 and the smelter would strengthen GFG Alliance’s steel-making capability in Australia and around the world. The sale is subject to final approval by the Foreign Investment Review Board. Commenting on the sale, Gupta in a statement had said,
“While living in Australia, I visited Tasmania a number of times and was impressed by its natural beauty, its commitment to renewable energy and the diversity of its industries.”
In a separate development the Liberty Group founder has also spoken of his desire in the acquisition of Tata Steel’s Port Talbot facility if the opportunity arises. Gupta who has a corporate reputation of picking up stressed assets had bought Tata Steel UK’s speciality steel business for £100 million three years ago.
There has been constant speculation in the media about Tata Steel’s plans to close its two blast furnaces at its Port Talbot steelworks in Wales and replace them with electric arc furnaces as part of plans to acquire millions of pounds via a UK government coronavirus bailout fund. Some reports have suggested that the government has refused all aid to Tata Steel, asking the company to rely either on the owners or other commercial avenues. According to reports the car maker sought aid under ‘Project Birch’, the government scheme to support structurally important companies. However, the company has still not made any concrete announcement regarding Port Talbot which employs 3,500 employees in Wales.
But Sanjeev Gupta has expressed his readiness in bailing out the Tatas in his interview with The Telegraph. Asked if he would look at Port Talbot if it was offered by the Tatas, Gupta said, “Of course.
“The Tatas are very close to Liberty Group; always have been. We have done many things together. We are always open for every type of co-operation with them. We will look at any steel assets, not only Port Talbot, that may come our way in the markets we operate in.”
