Jaguar Land Rover’s aluminum supplier could fold “in days” Car News

Metal component supplier Liberty Aluminum Technologies (LAT) is in talks with lenders to avoid falling under administration, posing a supply threat to its main customer, Jaguar Land Rover.

LAT, a division of GFG Alliance, led by industrialist Sanjeev Gupta, operates three sites, employs 250 people in the UK and would be on the verge of collapse if talks with lenders prove unsuccessful. Sky News quotes sources as saying that LAT could collapse “within days” if no buyers are found.

Gupta’s business empire has made headlines in recent weeks, after the collapse of major funder Greensill Capital left its global trading position uncertain.

Last month, it was announced that the Liberty Steel division, owned by GFG, would sell several of its UK factories in an attempt to raise capital, putting some 1,500 jobs at risk.

Jaguar Land Rover (JLR) is cited as LAT’s main customer. While it’s not clear what components it supplies to the automaker, aluminum forms the basis of the bodywork and chassis of many entry-level JLR models.

LAT was put up for sale in May as part of GFG’s restructuring program, but a buyer has yet to come forward and it is not clear whether avoiding insolvency proceedings will allow the company to continue its activities.

The Guardian reports that LAT has asked its main bank, Close Brothers, more time to continue discussions with four potential buyers. The newspaper quotes a spokesperson for the company as saying it was aiming for an “expedited sales process” if Close Brothers agreed to an extended deadline.

JLR declined to comment on the situation when approached by Autocar.


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This notice was published: 2021-06-22 14:25:33

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