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GFG Alliance Responds to Late Payments

whyalla_generic.JPGSanjeev Gupta has responded to claims about his company delaying publishing the accounts of more than 20 companies.

Many small businesses in Whyalla that supply the steelworks are allegedly still waiting on payments.

Small Business Ombudsman Kate Carnell lashed GFG Alliance last week over late payments to suppliers, saying one had waited more than 120 days.  

Mr Gupta has responded to the allegations offering reassurance to suppliers that they are working through the issues with great urgency.

The company is also working to introduce a Supplier Credit Facility by March to fast track future payments.

It follows on from the announcement that GFG Alliance will be entering a 5-year partnership with the Port Adelaide Football Club.

Mr Gupta has revealed that the transformation plans for the steelworks are running ahead of schedule.

It is predicted that the steelworks will begin breaking even by the middle of the year.

The upgrades are being described as a “long term journey” and the business will be very profitable once the upgrade of the existing plant was completed and production capacity increased by about 50 per cent, a process that could take about three years.