News: Liberty Steel plants to merge into one global group
GFG Alliance is set to consolidate its global steel businesses, with an ambition to lead the industry towards a carbon-neutral future.
International industrials and metals group, Liberty House, closed a deal with Tata Steel UK to acquire its Speciality Steels business, including the electric arc steelworks and bar mill at Rotherham, for a total consideration of £100m in 2017.
The family-owned alliance led by Sanjeev Gupta has announced that Liberty Steel Group, which altogether employs 30,000 people in ten countries, will be incorporated by the end of this year through a merger of GFG's upstream and downstream steel manufacturing, mining and distribution businesses around the world.
With 18 million tonnes of rolled steel capacity annually, Liberty Steel Group will be the eighth largest steel producer outside China, with operations stretching from Australia to continental Europe, the UK and the United States, and it will have annual sales of approximately $15 billion. Although individual businesses will retain a high degree of autonomy, consolidated accounts will be produced and a united strategy will be developed.
At the heart of the group's mission will be an ambition to build on GFG's existing GREENSTEEL strategy to aim for net carbon neutral status by 2030 – placing Liberty Steel Group on a pathway to become the first carbon neutral steel company in the world. This will include exploration of the best use of new technologies such as hydrogen generated from renewable power to produce steel.
The GREENSTEEL strategy focuses on using electric arc furnaces, like the one at Aldwarke in Rotherham, to recycle scrap steel, rather than producing all material from scratch, as well as using renewable sources of energy. Steel from recycled scrap using fossil fuel based energy generates less than a third of the CO2 emissions compared with primary steel making, with the benefit dramatically increasing to almost zero emissions with the use of renewable power in GREENSTEEL.
Aldwarke steelworks has the largest steel recycling capacity in the UK. The group has created 300 new jobs since the takeover and boosted production of high-grade steels, aiming to reach output of more than a million tonnes a year by 2020.
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Sanjeev Gupta, executive chairman of GFG Alliance, said: "We are creating a new force in steel with the size, scale and agility to forge a path towards a sustainable future for our steel businesses and the communities in which we operate. Our integrated group will stretch around the world, with a financial and governance structure suitable for an intercontinental business of our size.
"Steel is the building block of modern life and the GFG Alliance has always put sustainable strategies at the heart of its business model. We recognise that becoming carbon neutral by 2030 is a very ambitious target but we have firm foundations already with our GREENSTEEL strategy in motion, and with technical viability of hydrogen usage for direct reduced iron now proven it gives us the confidence that such developments allow us to aim even higher with our goals.
"As a responsible business, the legacy we pass on to future generations is every bit as important as our bottom line. Liberty Steel aims not just to produce top-quality steel but to be an agent of change in the industry. In doing so, we can open the door to the re-industrialisation of the developed world by reviving and restoring often neglected industry."
Liberty Steel Group will include operations drawn from Liberty House in the UK, Liberty Steel Continental Europe, Liberty Steel USA, Infrabuild and Liberty Primary Steel and Mining Australia. It will be organised in three divisions: Liberty Primary Steel, Liberty GreenSteel and Liberty Engineered Steel.
The group's strategy is set to encompass a balanced model, rather than a "silver bullet" – including transitioning existing blast furnaces towards electric arc furnaces, investing in new electric arc furnaces and piloting new clean technologies around the world. It will aim to tackle emissions at its sites by exploring technologies such as Direct Reduced Iron, carbon capture and storage and we will continue to participate in the development of various forms of renewables energy through our sister company SIMEC Energy.
Liberty Steel intends to liaise closely with other companies and industries seeking to reduce their carbon footprint.
Liberty Steel website
Images: Liberty House
International industrials and metals group, Liberty House, closed a deal with Tata Steel UK to acquire its Speciality Steels business, including the electric arc steelworks and bar mill at Rotherham, for a total consideration of £100m in 2017.
The family-owned alliance led by Sanjeev Gupta has announced that Liberty Steel Group, which altogether employs 30,000 people in ten countries, will be incorporated by the end of this year through a merger of GFG's upstream and downstream steel manufacturing, mining and distribution businesses around the world.
With 18 million tonnes of rolled steel capacity annually, Liberty Steel Group will be the eighth largest steel producer outside China, with operations stretching from Australia to continental Europe, the UK and the United States, and it will have annual sales of approximately $15 billion. Although individual businesses will retain a high degree of autonomy, consolidated accounts will be produced and a united strategy will be developed.
At the heart of the group's mission will be an ambition to build on GFG's existing GREENSTEEL strategy to aim for net carbon neutral status by 2030 – placing Liberty Steel Group on a pathway to become the first carbon neutral steel company in the world. This will include exploration of the best use of new technologies such as hydrogen generated from renewable power to produce steel.
The GREENSTEEL strategy focuses on using electric arc furnaces, like the one at Aldwarke in Rotherham, to recycle scrap steel, rather than producing all material from scratch, as well as using renewable sources of energy. Steel from recycled scrap using fossil fuel based energy generates less than a third of the CO2 emissions compared with primary steel making, with the benefit dramatically increasing to almost zero emissions with the use of renewable power in GREENSTEEL.
Aldwarke steelworks has the largest steel recycling capacity in the UK. The group has created 300 new jobs since the takeover and boosted production of high-grade steels, aiming to reach output of more than a million tonnes a year by 2020.
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Sanjeev Gupta, executive chairman of GFG Alliance, said: "We are creating a new force in steel with the size, scale and agility to forge a path towards a sustainable future for our steel businesses and the communities in which we operate. Our integrated group will stretch around the world, with a financial and governance structure suitable for an intercontinental business of our size.
"Steel is the building block of modern life and the GFG Alliance has always put sustainable strategies at the heart of its business model. We recognise that becoming carbon neutral by 2030 is a very ambitious target but we have firm foundations already with our GREENSTEEL strategy in motion, and with technical viability of hydrogen usage for direct reduced iron now proven it gives us the confidence that such developments allow us to aim even higher with our goals.
"As a responsible business, the legacy we pass on to future generations is every bit as important as our bottom line. Liberty Steel aims not just to produce top-quality steel but to be an agent of change in the industry. In doing so, we can open the door to the re-industrialisation of the developed world by reviving and restoring often neglected industry."
Liberty Steel Group will include operations drawn from Liberty House in the UK, Liberty Steel Continental Europe, Liberty Steel USA, Infrabuild and Liberty Primary Steel and Mining Australia. It will be organised in three divisions: Liberty Primary Steel, Liberty GreenSteel and Liberty Engineered Steel.
The group's strategy is set to encompass a balanced model, rather than a "silver bullet" – including transitioning existing blast furnaces towards electric arc furnaces, investing in new electric arc furnaces and piloting new clean technologies around the world. It will aim to tackle emissions at its sites by exploring technologies such as Direct Reduced Iron, carbon capture and storage and we will continue to participate in the development of various forms of renewables energy through our sister company SIMEC Energy.
Liberty Steel intends to liaise closely with other companies and industries seeking to reduce their carbon footprint.
Liberty Steel website
Images: Liberty House
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