Liberty Steel to Merge Downstream Assets in EU with Galati
GFG Alliance and LIBERTY Steel Group’s Restructuring and Transformation Committee, while providing an update on the restructuring of GFG’s steel businesses, also announced
Merger of downstream assets at Liège-Dudelange & Magona with Liberty Galati
Supply of HRC from Liberty Galati to Liège-Dudelange & Magona
Sale of UK aerospace and special alloys steel business in Stocksbridge
Focus on developing Rotherham plant in UK
Strategic options for UK Engineering business
Options for Cultana Solar Farm & Playford Battery projects in Australia
GFG Alliance and LIBERTY Steel Group’s Restructuring and Transformation Committee is developing plans to merge its European downstream businesses, LIBERTY Liège-Dudelange in Belgium & Luxembourg and LIBERTY Magona in Italy, into the LIBERTY Galati organisation to optimise operational integration between the three plants. Under the restructuring LIBERTY Galati will become the primary supplier of Hot Rolled Coil to LIBERTY’s downstream businesses, ensuring a secure and sustainable supply of their raw material. As part of the restructuring, LIBERTY Steel Downstream in Europe CEO Mr Renaud Moretti will now report to LIBERTY’s Primary Steel and Integrated Mining CEO Mr Paramjit Kahlon. The initial stages of that restructuring programme have already started, with the first supplies of HRC from LIBERTY Galati expected to arrive at the downstream plants within the next few weeks, allowing them to restart their lines soon afterwards. The company will continue in its constructive dialogue with unions and works councils on these changes.
In addition, restructuring of LIBERTY Steel UK is continuing to assess a sales process for its UK aerospace and special alloys steel business in Stocksbridge, which while being a unique, high quality business servicing marquee customers, is not core to LIBERTY’s future. This sale will allow LIBERTY to focus on developing its Rotherham plant, including its low carbon emitting electric arc furnaces, into a competitive two million tonnes plant. On the 2nd July LIBERTY Steel UK Managing Director Mr Jon Ferriman will be stepping down. Joining LIBERTY Steel UK as Chief Executive Officer is Mr Roy Chowdhury who brings with him thirty years of industry and turnaround experience. Mr Roy is joined by Mr Anton Krull as LIBERTY Steel UK’s new Chief Financial Officer. A new management structure to support LSUK’s revised business plan will be announced shortly.
The Restructuring and Transformation Committee has also been exploring strategic options regarding the future of the UK Engineering business. The process, which is being supported by Alvarez & Marsal, is focused on identifying new owners which would provide a sustainable future for the business serving automotive OEMs. GFG Alliance and the business’s key customers will continue to work together to provide adequate cash flow to keep the business solvent until the sale process is completed.
The Restructuring and Transformation Committee continues to explore potential strategic partnership or sale options for the Cultana Solar Farm and Playford Battery projects in South Australia. The options under consideration will include SIMEC retaining an interest and with GFG retaining priority access to this energy for its Whyalla development plans. This will expedite ways to power the Whyalla operations with low cost renewable energy, which is key to GFG’s future ambitions to scale up production and introduce hydrogen steel making.