Greensill this week filed for administration after losing support from insurers for its activities that involved paying suppliers for companies. GFG Alliance, the parents of Liberty Steel, was one of Greensill’s main clients, prompting speculation over its liquidity.

“On 5 March, shortly after the Greensill affair was revealed, Sanjeev Gupta sent me a letter in which he confirmed the problems of Greensill,” Fayot told lawmakers in parliament on 9 March. “In this document he also said that GFG Allilance remains committed to its Luxembourg site.”

GFG Alliance is even planning to grow its presence in administrative headquarter services, such as finance, procurement and logistics, in the grand duchy, Fayot said.

Gupta on Tuesday told labour unions in the UK--where around 5,000 jobs are connected to Liberty Steel--that GFG Alliance has “adequate funding” to fulfil its commitments while it is securing long-term financing options.

He apparently made similar assurances to Fayot, saying in his letter to the economy minister that Greensill would not impact the activity of Liberty Steel and its presence in Dudelange. “We will be following the situation closely,” said Fayot, adding that the government has requested to be kept updated regularly by the company.

ArcelorMittal in 2018 had to put the Dudelange site up for sale alongside six other locations as part of a European Commission competition deal to acquire Italy’s Ilva steel works. Liberty Steel in 2019 officially inaugurated the site under its new ownership.

The Dudelange plant is partnered with a site in Liège, also owned by Liberty Steel. The company had pledged a €100m investment after a 100-day review following the acquisition.

Luxembourg labour unions in statements issued on 10 March feared potential job losses. The LCGB said it had demanded an urgent meeting with management as well as “clear explanations and guarantees concerning potential risks to employment at the Dudelange site.”

The OGBL trade union said in a separate release said it had warned of risks linked to Liberty Steel from the get-go: “This announcement confirms the concerns of the OGBL, which had from the start identified the weaknesses in the financial construction of the Liberty project.”

The steel company has grown rapidly in recent years, making no fewer than 13 acquisitions since 2017 in Australia, India, Europe, the UK and the US. Across its portfolio, GFG Alliance employs 35,000 people worldwide. The Dudelange site employs around 250 people.