
Liberty Steel's Hartlepool pipes unit for sale as Gupta empire crumbles
Liberty Steel's Hartlepool pipes unit for sale as Gupta empire crumbles
- Advisers have been appointed to sell Liberty Steel's Hartlepool operation, targeting bids within the next fortnight.
- The Hartlepool steel pipes unit has been making losses and employs around 170 individuals.
- Without finding a buyer quickly, the future viability of the pipes unit remains uncertain.
Story
The dismantling of Sanjeev Gupta's business empire in the UK has accelerated, driven by financial difficulties and insolvency issues. Recently, advisers were appointed to find a buyer for the Liberty Steel's Hartlepool operation, which makes steel pipes for major companies like BP and Shell. The unit, employing approximately 170 workers, has been reported to be operating at a loss for several years. It is part of the larger Liberty Steel Group, which is owned by Gupta's GFG Alliance, facing significant financial strain and highlighting prevailing challenges in the steel industry. Last summer, Gupta's Speciality Steel UK (SSUK) operations were placed into liquidation by a judge due to insolvency concerns, marking a critical turning point for Gupta’s operations in the UK. The ongoing effects of economic pressures and demand fluctuations in the steel market have raised doubts about the future viability of many steel-producing units, including Liberty Pipes, unless alternative financial backing can be secured. The process to sell the pipes unit is being conducted by BTG Advisory and bids are expected by February 10, indicating an urgent need to resolve the situation potentially before or by that date. In an attempt to attract prospective buyers, multiple parties have expressed interest in the unit which includes companies such as Arabian Gulf Steel Industries, EIG Global Trust, and 7 Steel. Furthermore, Gupta is reportedly considering making an offer backed by major financial support from BlackRock. However, uncertainties remain about whether the pipes unit will have a sustainable future if a suitable buyer is not found soon. This situation also raises concerns over the employment prospects for the skilled workers currently employed at the Hartlepool site. The Liberty Pipes division has played a role in significant projects, recently delivering 51,000 tonnes of steel pipe for a major carbon cluster initiative in Teesside. Nevertheless, the unit faces criticism regarding its procurement decisions, especially concerning its orders for Chinese-made steel. The urgency of the sales process reflects not only the individual struggles of Gupta’s empire but also broader industry challenges that could reshape the landscape of the UK's steel market in the coming months and years.