GFG Alliance’s Fort William aluminium smelter pursue operations amid ongoing fraud investigation

The management of the Fort William aluminium smelter in Lochaber has conveyed to the area’s chamber of commerce that the plant operations are continuing as usual amid the commencement of a Serious Fraud Office (SFO) investigation into the activities of its owners, GFG Alliance.

Frazer Coupland, CEO, Lochaber Chamber of Commerce described the investigation as “unsettling” and said: “The plant and its associated hydropower station were a ‘critical part’ of the community.”

While on 14th May 2021, the SFO stated that it was investigating “suspected fraud, fraudulent trading and money laundering” concerning the financing and conduct of business at GFG Alliance companies.

The investigation will incorporate GFG Alliance’s multi-billion pound capitalization arrangements with collapsed lender Greensill Capital.

The British metal tycoon Sanjeev Gupta owned, GFG Alliance has said it will cooperate fully with the investigation and is in due progress for the refinancing of its operations.

In 2016, GFG acquired the Fort William aluminium smelter and operates through its aluminium division Alvance aluminium with a workforce of around 200 at the smelter and hydro plant.

Coupland, added:  “Lochaber’s smelter and hydropower station are a critical part of our Lochaber community, providing skilled jobs while also being central to the wider industrial supply chain in the Highlands.

“I am in regular communication with the management team at Alvance, and whilst the recent announcements are unsettling, the situation locally is that it does not affect operations: the team remain focussed on serving their customers and operating safely.”

Fort William aluminium smelter, which is said to be the last in the UK, was countering a possible shut down when Sanjeev Gupta’s GFG Alliance took it over from Rio Tinto five years ago for around £330 million including the surrounding 114,000-acre estate.

However, as part of the agreement, the Scottish Government guaranteed for the next 25 years to buy power generated by the hydro plant.

Willie Rennie, leader of Scottish Liberal Democrat has demanded answers on how tax-payers would be protected from the government’s exposure at the Lochaber smelter.

The Scottish Government commented it is continuing to “monitor developments closely” at GFG.

Alastair Nicolson, Area Manager, North development agency Highlands and Islands Enterprise (HIE) in Lochaber, Skye and Wester Ross, said: “We have worked with the company supporting their ambitions in relation to various projects in the Fort William area, but not awarded any funding.”