GFG Alliance, an international group comprising industrial, metal and energy firms, has announced that two member companies, Liberty House and SIMEC, will be acquiring Rio Tinto Aluminium’s hydro-power plants and aluminium smelter, which are located in the Scottish Highlands. This deal is worth approximately £330 million.
This is good news for those working in the energy and mining sectors in the region as energy and mining contractors and companies are gradually downsizing to cope with the fall in oil price and the reduction in demand for coal and steel.
It is anticipated that this acquisition will benefit over 150 workers already working at the site, as well as those working in the supply chain locally and regionally.
Liberty House Executive Chairman Sanjeev Gupta stated that the acquisition will help Liberty House develop a competitive and sustainable metals industry in the country, and he expects this strategic acquisition to help the business compete at a global level.
Gupta explained that this is part of Liberty House’s investment programme in Scotland and will be used as a stepping stone to boost manufacturing and provide job opportunities in Scotland.
This deal will see Liberty House and SIMEC acquire the hydro plants located at Lochaber and Kinlochlevel, the aluminium smelting plant at Lochaber, and an estate that is spread over 100,000 acres of land and will function as a water catchment facility.
The transaction is expected to be completed in about four weeks. Liberty House will develop its aluminium business by making the smelting units a part of its Scottish downstream engineering and manufacturing endeavours.
The hydro plants will be owned and operated by SIMEC, which already owns and operates renewables assets across the UK. According to SIMEC Energy and Mining Divisions Chief Executive Jay Hambro, this acquisition will boost the company’s portfolio and help the company reduce its carbon footprint.