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Former British Steel chair Roland Junck is joining Liberty Steel group, the newly formed steel business of commodities magnate Sanjeev Gupta.
Junck, who was also the first chief executive of ArcelorMittal MT, after the 2006 merger between an Indian and a French company, is set to become interim head of the U.K. and Europe for Liberty Steel.
Gupta said in a statement on Wednesday that the appointment was “an important step.” The metals tycoon sits atop GFG Alliance, an umbrella group for the Gupta family’s investments in mining, metals, manufacturing, and commodities trading. The company has spent billions buying up troubled companies in recent years, which has raised questions over the group’s financing and corporate governance.
Gupta last year promised to form Liberty Steel to improve the transparency and governance of his steel business.
In addition to appointing Junck, Liberty Steel also outlined on Wednesday details of a newly created board—made up of executives from GFG as well as independent non-executive directors — and the appointment of Baker Tilly as the group’s external auditor.
Liberty said the board’s initial focus will be on “weathering the Covid-19 storm” to ensure the business is well prepared for the recovery when it comes.
European steelmakers have been cutting production as the industry braces itself for the economic impact of the coronavirus pandemic.
GFG Alliance said on March 23 that it “continues to adjust production to demand on a plant by plant basis, with its highest priority being the safety of its employees.” Days earlier, ArcelorMittal said it is reducing production at several European sites as demand has been falling due to the coronavirus pandemic.
U.S. based investment bank Jefferies in late March downgraded its earnings forecast for the sector by 20%.
Liberty Steel is the eighth largest steel group outside China, with operations in 10 countries and 30,000 employees.
