Steel firm rescued but 45 jobs to go in Dudley

ABLACK Country steel business plunged into administration last month has been rescued, but its plant in Dudley will close.

Yorkshire outfit Barrett Steel has acquired significant parts of the Aartee Bright Bar business including its head office in Willenhall and a distribution centre in Rugby.

But its hot-rolled facility in Dudley will close, costing 45 jobs.

Barrett Steel’s £13 million rescue deal encompasses Aartee Bright Bar’s distribution businesses in Rugby, Bolton, Newport in Wales and Southampton, and its bright bar facility and HQ in Willenhall.

The buyout deal also includes Aartee Bright Bar Property’s freehold and leasehold interests at these sites which will now trade under the “Barrett Engineering Steel” banner.

Barrett Steel operates a number of steel stockholding companies and divisions across the UK, serving customers worldwide, and this rescue deal has added 173 employees to the group.

It sees the growth of the sixth-generation family business network to 35 locations across the UK, and provides Barrett Steel with a base to further service and support to customers in the Midlands, South West, North West and Wales.

It already operates Barrett Precision Tubes in Tividale, CMT Steel Services in Cradley Heath and Mattersons

in Coventry. Chief executive Andy Warcup said: “This acquisition will add to the strength and capabilities of our existing engineering steel businesses so that we are able to deliver exceptional service to our customers.

“We are excited to welcome the Aartee team to our group.” Administrators from Alvarez & Marsal were appointed by Aartee Bright Bar and Aartee Bright Bar Property in February.

A judge ruled last week that Aartee Bright Bar’s immediate UK holding company, Aartee Steel Group, should be put into compulsory liquidation.

Aartee Bright Bar was closely linked with metal tycoon Sanjeev Gupta and his GFG Alliance division which runs Liberty Steel.

Shortly after the appointment of administrators, GFG Alliance bought Aartee Bright Bar’s owner Aartee Group Pte and filed an application to challenge the administration but ultimately failed in its bid to acquire the company.

Joint administrator Michael Magnay said: “This substantial investment from Barrett Steel is a vote of confidence in the business and the wider UK steel industry.

“The companies’ creditors will now receive a substantial dividend and will have the opportunity to trade with the new business going forward.

“We are grateful to the employees and creditors for their support and understanding during this process, and to Barrett Steel for its commitment to the deal.”

This substantial investment from Barrett Steel is a vote of confidence in the business and the wider UK steel industry. Michael Magnay