Media Type: Archive

Senior executives and staff from Sanjeev Gupta’s GFG Alliance – owners of the Fort William aluminium smelter – were at the heart of the action today (Sunday 29th April) as hundreds of cyclists took to the saddle for the annual 66-mile Loch Ness Etape road race.

A 12-strong team from the company – who were also headline sponsors of the flagship event – completed the course on road bikes made by GFG factories in Scotland and the English West Midlands.

GFG is one of Scotland’s biggest industrial investors, having committed around £500m over the past two years to acquire and develop metals, manufacturing and energy plants across the country, including the Shand cycle plant at Livington. The Group recently announced plans to invest a further £500m over the coming years.

Liberty House, part of the GFG Group, is currently developing an alloy wheels factory next to the smelter at Fort William which will eventually employ more than 400 people directly with a similar number across the Highlands economy.

Sanjeev Gupta, the British Industrialist, is expanding his involvement in regulated financial services and banking by entering an agreement with Diamond Bank PLC of Nigeria to acquire its UK-regulated banking subsidiary, Diamond Bank (UK) PLC.

The entrepreneur, who leads the GFG Alliance group of companies, announced today (26th April) that a subsidiary of his family’s Wyelands Trust, has signed an agreement to acquire Diamond Bank UK, subject to approval from the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). The Central Bank of Nigeria has already approved the transaction.

The proposed acquisition is part of Mr Gupta’s strategy to expand further the financial services activities of the GFG Alliance, alongside its other business pillars of metals, industrials, power generation, infrastructure and property. His decision to make a further investment in banking follows his initial successful period of ownership of Wyelands Bank PLC, which he acquired in 2016.

Mr Gupta’s strategy is to identify and capitalise upon investment opportunities and gaps in the banking and financial markets. This is based on an analysis that significant gaps continue to exist in bank and non-bank funding availability for trade, commodity and supply-chain finance, globally.

Wyelands Bank, was established to address market gaps in funding for trade and working capital solutions to support UK industrial companies wanting to trade with developed economies worldwide. The new bank, which, upon change of control, is intended to be renamed British Commonwealth Trade Bank (BCTB) will complement this by addressing those same gaps for trade in developing economies, particularly within the Commonwealth. Like Wyelands Bank, BCTB will be separately capitalised and independently governed and managed.

Separately, Wyelands Capital, also part of the GFG Alliance, recently entered the credit insurance sphere by acquiring Transworld Credit Corporation, now being renamed Centinel Insurance Corporation (CIC), as well as investing in a joint venture with international working capital solutions business, Demica. These businesses are both regulated by the FCA.

Announcing this latest development, Mr Gupta said: “Finance is the life blood of our economy. Our first bank, Wyelands Bank, saw a gap in effective financial servicing for mid-sized UK industrial companies targeting developed countries worldwide and, after a successful first year, is now well on its way to becoming a leading institution in this market segment.

“The acquisition of BCTB, with its particular global networks, breadth of experience and specialist expertise in developing economies, will enable us to focus on a very different market gap; providing tailor-made financial solutions that enable UK businesses to access specific fast-growing markets, especially within the Commonwealth.

“GFG companies have a long history in trade with the Commonwealth and we hope to use both what we’ve learned and our worldwide contacts to help design a British bank focused on helping UK companies to access exciting new opportunities. Britain is a nation of traders, and, with our government’s new focus on international trade, we hope to play a key role in connecting UK businesses to customers and opportunities across the world, especially in the developing Commonwealth markets, where Britain has a long and rich history.”

“Post Brexit, there will be a heightened need to provide competitive financing to British companies in the commodities and industrial sectors as they seek to grow in new markets globally. BCTB will aim to be the ‘bridge’ between borrowers and lenders for trade with these markets.”

Uzoma Dozie, CEO of Diamond Bank PLC said: “We feel the proposed sale of our UK subsidiary, DBUK, to the GFG Alliance will provide our UK clients, employees and stakeholders with a new shareholder committed to developing its activities and business. Our particular attraction is the experience the GFG Alliance has in managing regulated businesses, as well as knowledge of Africa, which forms a key competency of DBUK.”

The transaction was welcomed by Secretary of State for Trade, Liam Fox, who said: “GFG’s acquisition of Diamond Bank UK will go a long way in helping UK businesses access opportunities in some of the world’s largest and fastest-growing markets. This includes the Commonwealth – with a third of the world’s population – where the bank has a strong presence.

“As we leave the European Union, it is essential that we make the most of trade and investment to help secure UK jobs, growth and prosperity. This is why my international economic department is helping companies seize the global business opportunities ahead.”

International energy and industrials group, the GFG Alliance, has unveiled plans to make a further investment of nearly £60m over the next two years to boost hydro-power capacity in Scotland, as it ramps up its programme for green-energy based manufacturing growth.

The Group, led by industrialist, Sanjeev Gupta, announced its intentions today (April 3rd) after completing its acquisition of Green Highland Renewables one of the UK’s leading hydro-power developers, which will now be known as SIMEC Green Highland Renewables (SIMEC GHR).

The announcement follows closely upon a recent meeting with First Minister, Nicola Sturgeon, when GFG disclosed that it aimed to double the £500m it had already invested in the Scottish economy.

Hydro is a core element in GFG’s strategy to expand its total UK green energy capacity for industry to 1Giga-Watt over the next three years. The GHR acquisition will trigger a programme to build or upgrade 12 hydro schemes in the Highlands by 2021, some of which will be on GFG’s 114,000-acre estate where it also plans to build a 400-worker alloy wheels factory next to its aluminium smelter at Fort William. GFG is reviewing offering ownership opportunities to local communities as part of its broader community involvement.

SIMEC GHR’s team of designers, engineers and project managers – based at Perth and Dingwall in Scotland – is also likely to work with GFG to develop hydro projects outside the UK, including a proposed scheme to build largescale pumped storage hydro capacity in South Australia, where GFG’s largest steelworks is located.

Jay Hambro, GFG’s Chief Investment Officer and Chief Executive of SIMEC Energy, said: “The SIMEC GHR team has an excellent reputation for planning, constructing and operating top-quality hydro schemes. They have delivered over 45 schemes and continue to operate 38 of these today. We are delighted the team is joining the SIMEC Energy family and it will be a valuable asset for the GFG Alliance and for our ambitions to become a major international producer of renewable energy for industry.

“GFG has an ambitious target to create a gigawatt of renewable energy generation to power its vision for a long-term economically and environmentally sustainable future for British business. UK Government studies have identified the potential to double Britain’s existing hydro-power capacity over the coming years, and SIMEC GHR’s assets and expertise will enable GFG to play a leading role in delivering that additional capacity as part of our overall GREENSTEEL and GREENALUMINIUM strategy,” he added.

Ian Cartwright, GHR Operations Director said: “We’re very excited about becoming part of the GFG Alliance as it will not only enable us to accelerate our existing plans but will give us opportunities to create new projects, both in the UK and further afield. Our team has a great track record for developing hydro projects and we’re confident we can achieve even more by working within an ambitious organisation like GFG.”

In addition to its hydro plans, SIMEC Energy is currently consulting with local communities in the Highlands on its proposal for an investment of around £150m in building a wind farm at Glenshero, designed to generate 164 MW of power. This project will be Britain’s first large-scale subsidy-free wind farm. A planning application for the development is due to be submitted this summer.

GFG Alliance Australia, has retained three renowned experts on industry, financial and political issues to form a GFG Alliance Australia Advisory Board.

GFG Alliance Australia is a leading integrated international group of companies in energy, metals, engineering, logistics and more recently infrastructure, financial services, property and mining, founded and owned by the British Gupta Family. The Alliance’s integrated business model aims to trigger the revival and re-growth of industry in the countries where it operates. The Alliance’s strategy has sustainability at its heart – both economic and environmental – as a means of delivering long-term solutions to cyclical industries.

The Advisory Board members will contribute their financial, geopolitical, and market expertise and insights to the firm’s strategic approach to development and growth.

The GFG Alliance Australia Advisory Board members are:

• The Hon. Alexander Downer AC, the current Australian High Commissioner to the United Kingdom former politician and Australia’s longest-serving Foreign Minister;
• Ray Horsburgh AM, veteran of the Australian steel industry, former Chairman of Toll Group and Calibre Global Limited, serving Chairman of AFL Victoria and Bill Hutchinson Foundation;
• Simon McKeon AO, chancellor of Monash University, philanthropist, investment banker and former Chair of the CSIRO.

“The GFG Alliance Advisory Board members for Australia are recognised leaders and policymakers in their fields, whose insights into how policy, industry and financial markets interact will be a valuable input to our investment and business development process,” said Sanjeev Gupta, GFG’s Chairman and Chief Executive Officer.

Liberty OneSteel’s Whyalla Steelworks is realising global integration within the GFG Alliance, commencing steel exports to Liberty Steel Newport in Wales.

The first parcel of nearly 25,000 tonnes of steel slabs has been successfully loaded at the Whyalla Port and will spend a month‐and‐a‐half travelling to the Welsh plant. Upon completing the trek – which will see the vessel pass the Cape of Good Hope – the steel will be converted into hot‐rolled coil to service a variety of industrial applications.

Whyalla Steelworks Executive General Manager, Theuns Victor, said the trial was an exciting step as the plant worked towards increasing production to 1.2 million tonnes per annum (mtpa) and beyond.

“This trial is the first element of our integration into the broader Liberty House supply chain, demonstrating we’re now an integral part of a truly global business,” he said.

“These exports will ultimately enable us to increase production, in‐turn resulting in greater utilisation of the plant which helps reduce our overall running costs.”

Mr Victor said the loading had proved a success, thanks to the hard work of the Liberty team in conjunction with SIMEC Mining and key contractors Harsco Metals, Ewings Contractors and Linx Stevedoring.

He said the loading of export parcels would increase in frequency until the steelworks reached its increased production targets, at which point it would become a regular occurrence.

“Although we have a secured customer for the product, we need to be competitive with global steel prices,”
he said.

“This trial is therefore crucial in identifying the various challenges and opportunities associated with exporting steel, helping us focus on driving logistics cost down and increasing our global competitiveness.

“It’s also a key aspect in us achieving 1.2mtpa and beyond, as the majority of the additional production that we’re targeting will be earmarked for export.”

This linkage into the broader Liberty House supply chain is at the heart of GFG Alliance’s focus on integrating and innovating to deliver value throughout the manufacturing process.

Wyelands, the financial services pillar of Sanjeev Gupta’s GFG Alliance, has announced that Wyelands Capital has made a number of strategic investments and senior appointments to drive forward its rapid development as a financial services provider.

Wyelands is a group of financial services entities including the independently-held and managed Wyelands Bank PLC. Wyelands sits alongside metals and industrial business, Liberty House, energy, infrastructure and resources group, SIMEC, and property company, JAHAMA, as one of the four key pillars of the US$12billion turnover international GFG Alliance.

Wyelands Capital has acquired London-based worldwide insurance solutions provider Trans-World Credit Corporation, which becomes a full member of the GFG Alliance.

The Trans-World team has a broad track record in the provision of insurance broking services, particularly within the field of political and trade credit underwriting. The acquired business will be the lead broker for trade credit risk insurance for members of the GFG Alliance globally as well as working towards the creation of a captive insurance programme.

The team’s first key project within Wyelands Capital will be to launch phase one of a new online proprietary platform designed to streamline and accelerate the process of assessing requests for credit insurance.

Wyelands Capital has also announced it has entered into a strategic partnership with Demica, one of the world’s largest working-capital Fintechs, to provide inventory finance to global commodity producers and traders. As part of this partnership, Wyelands Capital has also acquired an equity stake in Demica.

The partnership will combine Wyelands’ and GFG Alliance’s extensive trading network relationships and expertise in commodities markets with Demica’s wide range of working capital solutions delivered across its proprietary technology platform. Its objective is to address a significant gap in the market for inventory-led working capital solutions to industrial and trading businesses in the UK and globally. Wyelands joins JRJ Group, Toms Capital, and 76 West Holdings as investors in Demica.

To help drive its ambitious growth, Wyelands has also made several senior appointments. Among these is Simon Grenfell, formerly of Macquarie, Morgan Stanley, Goldman Sachs and most recently as global head of commodities at Natixis. He has joined Wyelands as head of financial restructuring and a non-executive director of Wyelands Bank. In addition, Simon Nasta, formerly of Allen & Overy LLP and the Bank of London and The Middle East plc joins as Group General Counsel. His most recent role was as General Counsel of First Bank of Nigeria.

GFG’s Executive Chairman Sanjeev Gupta said: “Wyelands Capital is a fundamental part of the GFG Alliance, providing financial services to the group and third parties. I am delighted by the growth of Wyelands both with Wyelands Bank as one of the fastest growing banks in the UK and Wyelands Capital as our core financial services provider.”

He added: “The new online platform will play a key role in providing insurance across the whole alliance and continue to build its third-party work. Wyelands, Trans-World and Demica are ideal partners, given the extensive commodity and banking experience within the GFG Alliance. Our aim is to provide industry-friendly financial solutions that will plug gaps in the marketplace to enable companies to grow. There is still a significant need in the commodity and industrial sectors for competitive financing and insurance. Demica’s market-leading platform and capabilities provide an exceptionally good “bridge” between borrowers and lenders in this space.”

Matt Wreford, Chief Executive of Demica added: “With over US$9bn of receivables and supply chain finance outstanding on our platform today, extending our offering into inventory finance is a logical next step to provide a full range of working capital solutions. Our partnership with the GFG Alliance will provide us with access to the deep domain expertise and relationships in the commodity sector necessary for success. We are excited about the opportunity to work with another entrepreneurial and highly-motivated firm and look forward to helping commodity firms to access committed, low-cost capital via our unique technology platform.”

Jeremy Hughes, Chief Executive of Trans-World Credit Corporation added: “This is an ideal partnership for us and we’re looking forward eagerly to working within the GFG Alliance to further develop our offer and ensure the most effective placement of global insurances both for the benefit of fellow companies within the Alliance and the wider international market. As a company we have made great strides over recent years and this gives us the opportunity to make a major step-change by combining our global insurance experience with the worldwide trading expertise of Wyelands and the GFG Alliance.”

Jay Hambro, Chief Executive of Wyelands Capital said: “These are very exciting times for Wyelands and we are very quickly expanding the range and scale of our services to clients of all sizes. We now have a London-based team of nearly 50 professionals with global experience and we’re particularly pleased to welcome people of the high-calibre of Simon Grenfell, Jeremy Hughes and Simon Nasta to that team.”

International entrepreneur Sanjeev Gupta’s GFG Alliance, which has already invested over £500m in Scotland’s metals and green energy sectors, celebrated its progress with a reception in Edinburgh following a meeting with First Minister, Nicola Sturgeon today (13th March).

Mr Gupta disclosed that GFG is now investigating plans to boost its investment figure to £1 billion over the coming years as it continues to expand its stake in the nation’s economy.

He also predicted that Scotland would become an international champion for a new era of green industry and a standard bearer for GFG’s own GREENSTEEL and GREENALUMINIUM strategies.

The GFG executive chairman said the Group, which has already rescued Scotland’s last steel mill in Lanarkshire and secured the future of Britain’s last aluminium smelter at Fort William, would continue ‘investing vigorously’ in both Scottish renewable energy and the country’s industrial capacity.

GFG recently agreed deals to acquire Green Highland Renewables, owner of 15 Scottish hydropower installations, and a 49.9% stake in Atlantis Resources, the UK’s leading tidal stream developer and operator.

Mr Gupta said: “We see Scotland’s potential to become the champion for our own GREENSTEEL and GREENALUMINIUM strategies as well as a global standard bearer for a new era of low-carbon industrial production, creating thousands of jobs. So far, we have committed over £500m to pursue this ambition and, under our current and medium-term plans, we would expect to see that figure rise to over £1 billion.”

He warmly applauded the role of the Scottish Government in supporting and enabling GFG to revive industrial assets and bring forward new investments such as the alloy wheels factory at Fort Williams which is set to go ahead in the coming months, following the granting of full planning permission in February.

“In our experience around the world we have yet to encounter any government as actively supportive and positive as the Scottish Government. We find this enormously helpful and it has certainly encouraged us to continue investing heavily in Scottish industry and creating skilled jobs,” he added.

First Minister Nicola Sturgeon said: “I welcome the significant commitment made by the GFG Alliance to invest in industry in Scotland. Sanjeev Gupta has recognised that Scotland is a good place to do business, particularly in relation to the talent and skills base we have here, including engineering and advanced renewable technologies.

“We are working with GFG to sustain and develop the employment of hundreds of skilled workers in Dalzell and Lochaber. They helped us save the Scottish steel industry and it is important that we now build on that.

“I welcome GFG’s future plans for Scotland and we will work with them to support our shared ambitions for low carbon industrial growth.”

To mark two years since GFG began investing in Scotland, and to celebrate the progress made through the Group’s working partnership with Scottish Government, Mr Gupta presented the First Minister with a special commemorative medal cast from aluminium made at Fort William.

International entrepreneur, Sanjeev Gupta, whose investments have secured 12,000 direct industrial jobs in the UK and Australia over the past two years, has been invited by HRH the Prince of Wales to help nurture a new generation of skilled manufacturing workers.

The Executive Chairman of metals, industrials and energy group, the GFG Alliance, has been appointed by Prince Charles as an official HRH Ambassador for Industrial Cadets, the flagship programme designed to give children and young people direct structured experience of industry while still at school or college.

The programme which currently involves more than 15,000 youngsters across the UK, was set up at the behest of His Royal Highness seven years ago after he visited steel plants at Teesside and heard how the manufacturing and engineering sectors were struggling to recruit young people to their ranks.

Industrial Cadets provides young students with high-quality accredited work experience during their years of education in order to give them a real exposure and understanding of industry, with the aim of encouraging them to choose careers in this field.

Mr Gupta’s GFG Foundation is actively involved in funding and promoting the Industrial Cadets programme through a partnership with the Engineering Development Trust. GFG Alliance companies including Liberty House and SIMEC, currently support 1,300 cadets from 26 schools across Britain to participate in the scheme, with a target of 5,000 students by next year.

Twenty-six GFG executives located at 13 industrial sites in the UK are regularly engaged in organising work placements at their respective plants, helping the youngsters to maximise the benefit they the get from time spent in the group’s steelmaking, engineering, power generation and manufacturing facilities. GFG also has an active apprenticeship training programme currently involving more than 100 young people in the UK.

Mr Gupta’s appointment as an official ambassador for the programme was announced during the Industrial Cadets annual awards event in central London today (7th March) during which high-performing participants in the programme were personally congratulated by Prince Charles.

His Royal Highness paid tribute to the GFG executive chairman while addressing the audience at the event: He said: “Sanjeev is doing so much to apply real imagination, innovative thinking and sustainable rejuvenation to our Nation’s heavy industries and I’m thrilled that he, through his GFG Alliance, has so enthusiastically become involved with Industrial Cadets as well.”

Commenting on his new role Mr Gupta said: “It’s a great honour to be invited by His Royal Highness to contribute to one of the most important tasks facing modern society; the task of ensuring our next generation has the motivation and skills to enable us to remain competitive and successful on the world stage in manufacturing. That was the fundamental reason why my wife Nicola and I, set up the GFG Foundation and why GFG Alliance businesses are so actively involved in supporting the scheme.”

He added: “Coming from a family of industrialists I had the opportunity while growing up to spend time in steel works and engineering plants. That left a lasting impression on me and really inspired me to pursue an active career in industry. I see Industrial Cadets fulfilling the same function and am very excited about the impact it is facing.”

He disclosed that, as part of his role as an HRH Ambassador, he has been tasked to establish Industrial Cadets in Australia where the GFG Alliance already employs 6,000 people in its integrated mining, steel and energy businesses.

Mr Gupta concluded “I am already an enthusiastic advocate for Industrial Cadets and now with the added honour and responsibility of being appointed His Royal Highness’ ambassador, I will double my efforts and will take Industrial Cadets to Australia where GFG has a strong presence and ability to execute this vision.

“Australian industry faces the same challenges as the UK with a generational gap on industrial skills and I am very confident Industrial Cadets programme will be equally successful there.”

GFG Alliance is continuing the long‐standing tradition of employing local youth at its Whyalla operations, recently recruiting 12 new apprentices.

According to Executive General Manager Whyalla Steelworks, Theuns Victor, the apprentices have been recruited from Whyalla and surrounding areas across both the Mining and Whyalla Steelworks businesses, incorporating fitters and electricians.

“We’re now part of the Gupta Family Group (GFG) Alliance, and our new ownership continues to recognise the importance of not only maintaining our required skill levels, but also growing this skill level, as well as underpinning our support of the community,” Mr Victor said.

“The apprenticeship program assists in all of these facets, so it’s great to be able to continue a tradition which has employed thousands of Whyalla youth over the years.”

Mr Victor said around 90% of apprentices secure permanent trade positions in the organisation at the end of their apprenticeships, so it represented a genuine opportunity to forge a career in the industry.

“We believe it’s vital for the ongoing success of the business to maintain and develop a talent pipeline for tradespeople, which is why we continued taking on apprentices even while in administration,” he said.

“As well as benefitting our operations and local job seekers, it also enables the local TAFE and UniSA campuses to continue to offer their industry‐based training and education programs, which is another positive for the community.

“I welcome all of our new apprentices to our team and trust they will have long and productive careers within our business.”

An ambitious plan by Sanjeev Gupta’s GFG Alliance to enhance South Australia’s energy security through an innovative pumped storage project near Whyalla, moved a step closer to reality today with the award of Australian Government funding for a significant pre-feasibility study.

The Australian Renewable Energy Agency (ARENA), on behalf of the Australian Government, is providing A$500,000 for the GFG Alliance to investigate how the Iron Duchess North mine pit, in the South Middleback Ranges of South Australia, could be utilised as a lower reservoir for a pumped hydro energy storage (PHES) plant with an estimated capacity of 90 MW and 390 MWh.

This activity will receive funding from ARENA as part of ARENA’s Advancing Renewables Program, and follows on from an earlier, positive concept study in relation to the project. ARENA’s funding adds to a similar financial commitment from the Government of South Australia via their Renewable Technology Fund announced earlier this month.

PHES works by pumping water uphill between two connected reservoirs at times of low electricity demand when power is cheap and abundant, and then running the water back downhill to drive turbines during periods when demand is high or when supply is low due to lack of wind or sun.

The first stage of this study is expected to be completed in six months, and will include high-level designs, engineering studies, network studies, geotechnical investigation, market modelling and commercial evaluation.

If the results from this study are positive, this proposed investment in Australia’s future green energy supply – currently having an estimated cost of A$170 million – could be built by 2022.

SIMEC ZEN Energy – part of the GFG Alliance – will play a key role in the study and will also be project managing it. Responding to the funding announcement, Geoff Titus, Chief Executive Officer of SIMEC ZEN Energy said:

“We’re grateful to ARENA for their support on this important scheme. This ground-breaking study into pumped hydro storage potential at the South Middleback Ranges is a great opportunity for SIMEC ZEN Energy to obtain real-world insights and use these to provide solutions for customers seeking secure, affordable and low-emission energy to overcome their current energy challenges.

“We look forward to working initially with Liberty OneSteel to meet its energy needs and ultimately to establishing partnerships with other large energy users across Australia seeking a new way of contracting energy for their long-term success,” He added.

Matt Reed, Executive General Manager of GFG Alliance business SIMEC Mining, said: “As well as the environmental advantages this innovative renewable energy project will bring, it will also re-use depleted pits, thereby unlocking a legacy from past economic activity for the benefit of Australia’s future generations. GFG Alliance, with its unique focus on energy, mining and industry is ideally placed to capture this added value for the economy.

“GFG Alliance is grateful for this funding support that will help accelerate Australia’s transition to a more economic, secure, reliable, and sustainable electricity network,” he added.