UK’s GFG pledges $1 bn after Arrium takeover

Sydney: Britain’s GFG Alliance has vowed to invest up to $1.0 billion in Australian steelmaker Arrium after formalising its takeover of the cash-strapped firm on Friday, even as the sector faces a global supply glut and soft demand growth.
The alliance, owned by Britain’s Gupta family, in July beat a Korean consortium to buy Arrium after it went into voluntary administration last year with bad debt and plunging commodity prices.
GFG said there would be “major capital investments” across several sites, efforts to streamline the business, and more iron ore and steel exports. It added that it was “investing up to $1 billion across (Arrium’s) Whyalla steelworks and mining businesses” and was looking to invest further in Australia, including in a new steel plant and major port and infrastructure development.
“As we now focus on our plans for investment and growth, we have every reason to be confident that this business shall increase its already significant role in supporting the construction of Australia’s future,” GFG Executive Chairman Sanjeev Gupta said in a statement. — AFP