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Gupta Touted Bold Plans as Steel’s ‘Savior’. He Didn’t Deliver

Gupta Touted Bold Plans as Steel’s ‘Savior’. He Didn’t Deliver


News is brought to you by Mr. Shailesh Karia


Published on date 03rd May 2021.


In 2017, Sanjeev Gupta was the toast of Whyalla in South Australia, after buying its decades-old steel plant out of administration and announcing a more-than A$1 billion ($777 million) upgrade.


His GFG Alliance even sponsored the city’s Christmas pageant, with the steel tycoon and his family following Santa’s sleigh through the streets on a float called the “Gupta Express.” Expectations were ramped up further when Gupta told an audience including Prime Minister Scott Morrison that he planned to build “one of the largest steel plants in the world” in the town.


But so far there’s little to show for it. Last June, Gupta said he was going back to the drawing board and would instead “pivot” to a hydrogen-powered green steel plant.


That story of planned salvation and stalled delivery has been repeated across Gupta’s steel and aluminum empire. The industrialist, once dubbed the “savior of steel” by the U.K. press, is now hunting for new sources of funding following the collapse this year of his biggest lender, Greensill Capital.


Governments are now left contemplating aging assets and the prospect of thousands of job losses. While surging prices for steel and aluminum are helping boost bottom lines for GFG’s businesses, Gupta himself has admitted it’s “constantly a fight” to keep his empire afloat and that “some difficult decisions” may be required.


 


Source : https://www.bloomberg.com/


 





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