Gupta’s metals empire sells two factories to a Coventry-based car parts maker
Rescue: Evtec will take over two of GFG Alliance’s casting plants, in Coventry and Kidderminster
Sanjeev Gupta’s metals empire has sold two aluminium parts factories to a Coventry-based car components maker.
Evtec will take over two of GFG Alliance’s casting plants, in Coventry and Kidderminster – a move that saves 170 jobs.
The parts supplier is thought to have paid more than £10million for the factories. British car maker Jaguar Land Rover (JLR) had asked Evtec to take over the sites amid concerns GFG’s financial troubles could imperil its supply chain.
Evtec took over another of JLR’s suppliers, components maker Arlington Automotive in Coventry, earlier this year.
However, a separate plant in Witham, Essex, is due to be shut down, costing 64 jobs, after losing business from Ford, which makes engines in Dagenham.
A GFG spokesman said Liberty Aluminium, the business that owns the factories, had been under ‘significant commercial pressure’ due to ‘very challenging conditions’ for its customers, particularly car makers.
GFG has also been scrambling to restructure and raise funds after key lender Greensill Capital collapsed in March.