GFG Alliance denounces move to close Aartee Bright Bar’s UK Dudley steel plant

Metals and energy group GFG Alliance March 28 denounced the closing of Aartee Bright Bar’s steel plant in Dudley, England, after the majority of the collapsed steel producer was acquired by Barrett Steel in a rescue deal negotiated with administrators.

The GBP13 million ($16 million) purchase does not include the Dudley hot-rolled steel plant, which administrators Alvarez & Marsal Europe have confirmed will be closed, according to local media.

In a statement, GFG Alliance outlined its attempts to support the Dudley plant, including the provision of GBP650,000 to avoid redundancies as it sought to negotiate a rescue deal with administrators.

“The administrators have decided against GFG’s business plan which would have rescued ABB in its entirety, saved all its 250 employees and ensured its continuation as a going concern,” said Jeffrey Kabel, CFG’ chief transformation officer. “Within hours of this development, we witnessed the devastating impact of the decision with the announcement of immediate layoffs of all employees at ABB’s steel plant in Dudley. We struggle to see the logic in this outcome which has put short term gain for a selected few ahead of the long-term interest of the UK steel industry and its workforce.”

GFG Alliance attempted to overturn the administration of ABB; however, its challenge was subsequently dismissed by the UK High Court of Justice on March 17.

The Barret Steel acquisition encompasses ABB’s distribution business in Rugby, Bolton, Newport and Southampton, and its Bright Bar facility operating out of Willenhall, in addition to Aartee Bright Bar Property’s freehold and leasehold interests at the sites, Bradford-based Barrett said March 27.

According to Barrett Steel, the acquired sites will now trade as Barrett Engineering Steel Rugby, Barrett Engineering Steel Bolton, Barrett Engineering Steel Newport and Barrett Engineering Steel South.

“This acquisition will add to the strength and capabilities of our existing Engineering Steel businesses so that we are able to deliver exceptional service to our customers,” said Barrett Steel CEO Andy Warcup in a statement.

Platts, part of S&P Global Commodity Insights, assessed the weekly UK hot-rolled coil price at GBP 775/mt ($956/mt) DDP West Midlands March 23, down 37% from the all-time high of GBP 1,225/mt on April 22, 2022.

— Euan Sadden