Takeover of collapsed steel firm expected to save 250 jobs across sites including Willenhall and Dudley

The rescue deal is expected to save 250 jobs across the business including a site in Dudley.

GFG Alliance, owned by Mr Gupta and his family, has bought Aartee and filed an application to challenge the administration.

It comes after Aartee, the UK's largest distributor of engineering steel products and a key customer of Mr Gupta's Liberty Steel, called in administrators last week, blaming tough economic conditions and surging metal costs.

Over time, the business would be integrated into Liberty's operations as part of its transformation plan focused on producing specialist steel products, GFG said.

Artee also has sites in Rugby, Bolton, Southampton and Newport, South Wales.

Jeffrey Kabel, chief transformation officer at GFG, said: “ABB is a significant part of the UK’s steel supply chain and distribution network, and a key customer for GFG’s bar products produced in Rotherham by Liberty.

"Our rescue plan would save 250 viable steel jobs in the West Midlands and across the UK. Over time ABB’s business would be integrated into Liberty’s operations helping to reinforce our UK transformation plan focused on producing specialist steel products.”

GFG's application to challenge administration is being supported by a majority of business creditors, it said.

ABB had blamed tough economic conditions and surging metal costs for the downfall.

The steelworkers' union, Community, said the rescue deal is good news for workers and that Aartee seems a "natural fit" for GFG, which has about 35,000 staff in 10 countries.

Alun Davies, Community's national officer, said: "The news of GFG Alliance's purchase of Aartee Bright Bar is very encouraging.

"Aartee seems a natural fit for GFG and the acquisition can safeguard jobs and important steel assets.

"While we await further details about GFG's plans for Aartee, this development will, no doubt, be welcomed by both the Aartee workforce as well as those working across the supply chain."

Last week, Mr Davies said that Government negligence was to blame for the firm's collapse, having failed to act on issues like energy costs and procurement.

He said it reflects the extreme pressures the industry is under, with thousands of jobs reliant on the future of the sector.

The Manchester office of business consultancy firm Alvarez & Marsal has been handling the administration of Aartee Bright Bar, which has its head office at Planetary Road.

Aartee, previously Acenta, has its origins as George Gadd in Tipton in 1865. The bright bar business was established in the 1940s bringing together four businesses.

It became Aartee Bright Bar in 2021 after being bought by Aartee Group in 2018. It includes a hot rolled bars division at Peartree Lane, Dudley, and a distribution arm with sites in Rugby, Manchester, Southampton, Sunderland and Newport, South Wales. Processing is carried out at Willenhall.