'Pivotal moment' in fight for 250 Black Country steel jobs as firm set for day of destiny

The High Court in Manchester will hear a challenge by GFG Alliance against ABB's entry into administration.

It has applied to overturn the administration process of Aartee Bright Bar, which has its headquarters in Planetary Road, Willenhall and a site in Dudley.

ABB was bought by GFG on February 23 after it went into administration following a creditor dispute.

It has since provided funding to cover wages to prevent a reduction in jobs expected under the administration.

GFG, the parent company of Liberty Steel, says its rescue plan would save 250 steel jobs at Planetary Road, the hot rolled bars division at Peartree Lane, Dudley, and the distribution arm.

It has applied to overturn the administration process and Jeffrey Kabel, chief transformation officer of Linerty Steel – said: "The administration has put 250 viable skilled steel jobs across the UK in grave danger at a time when the UK steel sector and its supply to strategic industries such as defence and aerospace is already under severe strain.

"ABB has a route to survival. It is a major customer of Liberty Steel which itself has had to restructure its business to tackle the challenge of high UK energy prices and volatile steel markets. Supplying ABB is a significant part of our recovery programme.

"Since GFG Alliance acquired ABB’s parent last month, we’ve proposed a clear business plan to immediately end the administration.

"Our plan will integrate ABB and Liberty Steel’s Engineering Bar divisions to ensure all its operations continue as a solvent going concern.

"We guarantee that if the court supports GFG’s application to overturn the administration of ABB we will protect each and everyone of ABB’s 250 viable jobs.

"It would immediately be a superior outcome for creditors and employees as opposed to a damaging insolvency process which risks a fire sale of ABB’s plant, equipment and landholdings, leading to closure and redundancies."

Mr Kabel said ABB would benefit by financial support from GFG to cover working capital needs.

"We’ve been energised by many strong messages of support from contractors, business partners and employees whose jobs are on the line," he added.

"We urge all ABB’s supporters to rally round the company in its hour of most need.

"ABB is at the heart of West Midlands industry and a vital part of the UK’s steel supply chain and distribution network. The fight to save it must be successful. We are proud to be on the front line."

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.

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. Processing is carried out at Willenhall.