Calls have been made for the Welsh and 海角视频 governments to consider providing support for the business interests of global steel magnet Sanjeev Gupta after his main funder was put into administration.
Australian finance house Greensill, with its heavily exposed lending book to Mr Gupta's business interests, was put into administration on Monday.
With Greensill having provided more than 拢3bn to Mr Gupta and his family-owned firms under the GFG Alliance, there are now concerns over the future of thousands of jobs at steel plants across the 海角视频.
Liberty Steel, one of the business groups under the GFG Alliance, employs around 200 at Liberty Steel Newport and Liberty Steel Tredegar. Across the 海角视频 Mr Gupta's firms employ 5,000 and 30,000 globally.
It also has an interest in the Uskmouth Power Station , which is seeking to raise investment to move to biomass energy generation to supply the adjoining Liberty Steel Newport plant, where last year it announced 70 redundancies.
Last year the GFG Alliance consolidated his interests into three industry brands: Liberty Steel Group, Alvance Aluminium Group and Simec Energy Group.
Mr Gupta鈥檚 acquisition strategy has focused on struggling business interests, with the aim of creating synergies and moving them into profitability by pivoting them to less carbon intensive production through his much vaunted green steel initiative.
A representative from steel union Community said: 鈥淪anjeev Gupta needs to tell us exactly what the administration means for Liberty鈥檚 海角视频 businesses and how he plans to protect jobs.鈥
Private equity firm Apollo Global Management is considering a bid for parts of the Greensill group.
But it has offered just 拢43m for the assets it wants 鈥 a far cry from the 拢5bn value Greensill had recently been targeting in a potential stock market listing.
The Welsh Government has provided funding, mainly through its Covid response Economic Resilience Fund (ERF), to Mr Gupta鈥檚 firms in Wales.
This consists of:
Liberty Steel Newport receiving 拢160,678, of which 拢132,000 was through the ERF.
Liberty Steel Tredegar, 拢49,000 from the ERF; and
Simec Uskmouth Power, 拢75,000.
The Welsh Government also offered 拢600,000 of repayable business finance to Liberty Steel Tredegar in 2016 , which the company accepted towards an expansion project.
However, no monies were paid as the project subsequently did not go ahead.
Greensill鈥 provided Mr Gupta with funding, effectively discount finance against invoices, to acquire often distressed and under performing assets from the likes of Tata, Arcelor Mittal and Rio.
Last year former First Minister for Wales, Carwyn Jones, was appointed to a new advisory board for the GFG Alliance.
GFG said the board is tasked with guiding the company in delivering its strategic priorities to achieving best practice in environment, social and governance, particularly towards its carbon neutral 2030 target.
Plaid Cymru MS Delyth Jewell said: 鈥淚t鈥檚 imperative that the Welsh Government acts quickly and ensures that no stone is left unturned in the effort to save these crucial jobs.
鈥淣ewport has already suffered recent losses following the closure of the Orb plant by Tata, and the 72 redundancies that were made in the Liberty plant last year.
The Welsh Government should already be fully aware of the situation, considering that the First Minister Carwyn Jones sits on the advisory board of GFG Alliance, of which Liberty is a subsidiary.
"The Economy Minister(Ken Skates) should demand an urgent meeting with the Business Secretary Kwasi Kwarteng to press on him the need to take immediate action to save these jobs and secure a sustainable future for steelmaking in Wales, and bring a statement to the floor of the Senedd this week to explain what action is being taken on behalf of all these dedicated workers.鈥
Shadow Minister for Economy, Business and Infrastructure, Russell George MS, said: 鈥淭his announcement, of course, will undoubtedly cause anxiety for workers and their families.
鈥淪o, first and foremost, the most important aim now is for dialogue to ensue, in a bid for a solution to be found.
鈥淪teelworkers in Wales have a brilliant reputation for creating high-quality products and I truly hope a solution can be reached.鈥
GFG said: 鈥淥ur operations are running as normal and our core businesses continue to benefit from strong market conditions generating robust sales and cashflows. Our operational efficiency programme has improved profitability and we are making progress with financial institutions that can help to diversify our funding.鈥
