At the beginning of the year, various steelworks located in Australia, the UK, Romania, and the Czech Republic were part of Sanjeev Gupta’s GFG Alliance but were not operational. Gupta, originally from India and known for acquiring struggling steel plants, has faced significant challenges recently, culminating in a significant legal setback this week. The London high court ruled that his key subsidiary, Speciality Steel UK (SSUK), should enter compulsory liquidation due to insolvency, carrying debts amounting to several hundred million pounds with minimal financial resources available. Following this ruling, government-appointed managers began discussions to take control of UK operations and ensure employee salaries are met.
Gupta, who did not attend the court proceedings, expressed sorrow over this development, but there are indications that he intends to attempt to buy back SSUK. Meanwhile, other segments of the GFG Alliance are expected to continue operations as they have been, indicating a degree of business continuity amid these challenges.
The ongoing insolvencies affecting Gupta’s companies have spotlighted issues such as inadequate working capital and concerns about operational safety. There are reports of multiple companies within Gupta’s portfolio facing bankruptcy or severe financial distress across various countries. The situation is compounded by an ongoing investigation from the Serious Fraud Office in the UK, which is examining financial dealings related to Gupta’s operations.
As GFG’s financial situation deteriorated, employees and industry observers have raised questions about the future of the steelworks, particularly in regions like Whyalla, Australia, where Gupta’s involvement has drawn criticism. Government support packages have been initiated to maintain operations and salaries. The broader steel industry is experiencing difficulties due to excess production and fluctuating demand, mainly influenced by geopolitical circumstances and market conditions.
Workers and communities tied to Gupta’s steelworks now find themselves in precarious situations, questioning the viability of their futures and whether Gupta can fulfill his commitments or more effectively manage the companies under his control.
Source: https://www.theguardian.com/business/2025/aug/22/from-yorkshire-to-australia-sanjeev-gupta-steel-empire-unravelled