LONDON: Steel giant GFG Alliance has announced it will inject £50 million to relaunch production at its Rotherham furnace in Northern England, in a move that will safeguard 660 jobs.
The cash infusion, equivalent to $68 million or 59 million euros, was confirmed on Sunday in an update on the troubled group's ongoing restructuring and refinancing.
As a result, the British-based Liberty Steel division will restart the Rotherham facility while the money will also help its specialty unit in Stocksbridge run production campaigns for key customers.
The company has also secured a debt restructuring for its Liberty Primary Metals Australia division with Credit Suisse Asset Management, which is one of the group's main creditors.
GFG, owned by Indian-British billionaire Sanjeev Gupta, lurched into crisis earlier this year following the collapse of its controversial financier Greensill.
"The injection of £50 million of shareholder funds into Liberty Steel UK is an important step in our restructuring and transformation," said Jeffrey Kabel, GFG chief transformation officer.
"It will help to create sustainable value, ensure that Liberty has the ability to raise and deploy capital quickly in the UK and enable our businesses to demonstrate their potential and agree to long-term debt restructuring."
Greensill's spectacular implosion in March threatened tens of thousands of jobs at companies around the world that relied on its financing for their supply chains including GFG.
Liberty employs 3,000 UK staff while GFG has 35,000 employees around the world with metalworks and mines in Europe, the United States and Australia.