Liberty Steel intends to invest EUR 200 million in the Galati steel plant

In July 2019, Libery Steel completed the acquisition of seven large steel plants and five service centers in seven European countries from ArcelorMittal, this transaction also included the Galati steel plant.

Liberty House, part of the GFC Alliance, is an international group based in Great Britain, controlled by the industrialist of Indian origin Sanjeev Gupta, specialized in the production of steel and aluminum, but also with important trade operations and raw materials, as well as metal recycling . The company intends to invest approximately 200 million euros in the recently acquired Galati steel factory. To maintain capacity, expand product ranges and make better quality products, according to Bloomberg.

The group paid 740 million euros to ArcelorMittal. For factories located in the Czech Republic, Romania, North Macedonia, Italy and Belgium.

Chief executive Jon Bolton told Bloomberg that Liberty Steel intends to invest over EUR 400 million. In the next five years in the seven acquired factories.

Investments for the Galati steel plant

Approximately half of the investment will go to the plant, Romania. Because the growth prospects are better than in other parts of Europe, according to Bolton. GFG Alliance recently announced that it intends to integrate most of Liberty House’s mining and engineering businesses into a single global steel group with assets in the UK, Europe and Australia.

The consolidated business of GFG Alliance would include its steel and engineering assets in the UK, a steel mill. Also, mines in Australia and seven European factories that it acquired from ArcelorMittal. Including the steel plant, the largest in Romania.

The iron and steel plant from Galati, the former SIDEX, represented one of the most famous Romanian enterprises during the years of communism. Built in the 60s, the Galati Iron and Steel Plant occupied, before 1990, the 6th place in the world in the production of thick sheet metal and has approximately 40,000 employees, while steel production amounts to almost 8 million tons annually.

Article source: http://business-review.eu/business/liberty-steel-plans-to-invest-eur-200-mln-in-galati-steel-plant-due-to-better-growth-prospects-204391