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Aluminum April 27, 2021 03:15:27 PM

Three GFG Alliance Plants Placed Into Voluntary Administration

Paul Ploumis
ScrapMonster Author
It must be noted that GFG Alliance has been struggling for finances, following the collapse of Greensill Capital-GFG’s primary lender.
Three GFG Alliance Plants Placed Into Voluntary Administration

SEATTLE (Scrap Monster): Alvance Aluminium, belonging to the GFG Alliance Group, announced that three of its plants on France have now been placed into voluntary administration. Unforeseen changes in market conditions and lack of adequate working capital are being cited as the main reasons for the development. It must be noted that GFG Alliance has been struggling for finances, following the collapse of Greensill Capital-GFG’s primary lender.

The three facilities to enter administration are the Poitou iron and aluminum foundries and the Chateauroux aluminum wheels factory. It must be noted that all the three facilities have been reporting losses for the past few years now. Meantime, the decision is unlikely to affect Alvance’s other European operations including those in northern France, Scotland and Belgium, which are said to be operating normally, said an emailed statement by the company spokesperson.

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The judicial administration status of the three businesses was approved by a French court on April 23, 2021. The company welcomed the tribunal’s decision, saying that it will lead to sustainable outcome for the businesses. Further, it assured the administrator with all possible support in taking the process forward.