GFG Alliance Decides to Sell Two French Steel Plants

SEATTLE (Scrap Monster): The Sanjeev Gupta-owned GFG Alliance announced its decision to sell two steelmaking plants in France. The company has reportedly appointed France-based investment bank Rothschild Bank to assist the company in the sale process. The company has been struggling hard for finances following the collapse of Greensill Capital- its primary lender.

The company is seeking potential buyers for its Ascoval, Saint-Saulve and Hayange, Moselle steelmaking facilities, which it had acquired in August last year from the France Rail Industry. The electric arc furnace (EAF) Ascoval steel facility supplies semi-finished steel to the Hayange facility, where they are converted into rail.

RELATED NEWS:

Three GFG Alliance Plants Placed Into Voluntary Administration

GFG Alliance's Aluminum Units Seek Protection from Creditors

The Ascoval facility has an annual production capacity of approximately 600,000 metric tons of steel blooms, billets and other forged products. Meantime, the Hayange facility produces over 300,000 metric tons of rail per year, mainly to customers including SNCF- the country’s national rail operator and RATP- the operator of the Paris’ metro train system.

GFG Alliance had recently established a Restructuring & Transformation Committee (RTC) in order to look into restructuring of operations, by focusing only on core profitable units and finalize on either fixing or selling underperforming units.