THE company that owns the UK’s only aluminium smelter at Lochaber is putting itself at the centre of Europe’s steel industry with an agreement to buy four steel plants which employ more than 12,500 people.
Liberty, part of Sanjeev Gupta’s global GFG Alliance, has made a binding offer for ArcelorMittal’s integrated works at Galati in Romania and Ostrava in the Czech Republic, along with rolling mills at Skopje in Macedonia and Piombino in Italy.
The transaction, which is subject to European Commission approval and local consultations, would take Liberty’s total rolling capacity to over 15 million tonnes a year.
Liberty already has a strong position within the UK as a steel and aluminium supplier and the addition of these hubs more than doubles its global manufacturing capacity.
It also paves the way for the group to further develop its primary and Greensteel sustainable production models.
Sanjeev Gupta, executive chairman of the GFG Alliance, said: “I am delighted to announce this landmark transaction, our biggest milestone to date.
“At a stroke these acquisitions would almost double the size of our workforce and global production capacity, giving us a strong presence in the heart of Europe’s key manufacturing regions.
“We intend to work with local partners to position ourselves strongly within the domestic supply chains of these fast-expanding national economies and become a pivotal part of a thriving European industrial sector.
“These are high-quality assets with highly-skilled staff whom we’re looking forward to welcoming into the GFG Alliance.”
The four sites involved have a combined rolling capacity of around 8m tonnes a year and would give Liberty the ability to supply a full range of finished steels.
Jay Hambro, GFG Alliance’s chief investment officer, added: “These steel operations are high-performing, profitable assets with modern equipment, excellent transport connections to key markets and high-skilled workforces. There is huge potential for expansion, further modernisation and the application of GFG’s Greensteel strategy.”
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