GFG in new French connection

Industrial magnate Sanjeev Gupta has made a formal approach to take over AR Industries (ARI), the only French maker of aluminium car wheels, which has fallen into administration.

Gupta, who has expanded strongly in Scotland in recent years in steel, aluminium and green energy, is in talks with the administrators about injecting rescue funds that could save nearly 400 jobs.

The offer has been made by Gupta’s GFG Alliance subsidiary, Liberty Group, which owns the Dalzell steel plate mill in Motherwell and the Clydebridge plant in Cambuslang.

Last year the industrialist bought the aluminium smelter plant in Fort William, and has since won planning permission for a two-million wheels per annum alloy wheel factory nearby.

Liberty aims to supply UK vehicle makers with up to 25 per cent of total UK domestic demand from the new Scottish plant.

Yesterday’s statement from Liberty said: “The acquisition of AR Industries, which produces wheels for Renault/ Nissan and PSA, would work in parallel with Liberty’s construction of the wheels factory next to its aluminium smelter in Fort William.”

It is understood that apart from saving French jobs and helping establish France as a major operating hub, the deal is seen as giving Liberty access to specialist engineering expertise to help set up the new alloy wheels factory in Scotland.

The Scottish site could eventually employ 400. Separately, GFG, which has worldwide turnover of $12 billion, has also recently announced that it is purchasing Aluminium Dunkerque, Europe’s biggest aluminium smelter, from Rio Tinto as part of its growth plans.