British Industrialist Acquires ArcelorMittal’s US Steelworks

British industrialist Sanjeev Gupta’s Liberty House completed the purchase of ArcelorMittal’s US steelworks in Georgetown, South Carolina, the company announced in a statement on Dec. 18.

This is the first in a series of strategic North American acquisitions and new projects targeted by GFG Alliance, an international business group founded and run by Gupta. ArcelorMittal, on the other hand, is owned by NRI steel magnate Lakshmi Mittal, who is the firm’s chairman and CEO.

“Securing the Georgetown furnace and mill is a major milestone for us, marking our first major step in the USA,” Gupta, the executive chairman of the GFG Alliance, said in a statement released by the company. “The melting and rolling facilities here give us a formidable entry to the American market and provide a strong platform for expansion.”

Gupta added that the company sees major prospects for the metals industry in the United States and wants to apply the same “green steel sustainable strategy” to its American plants, since they are already delivering in the United Kingdom and Australia.

“We’ve already had customers contacting us about placing orders, so we’re keen to get back up and running as quickly as possible,” the statement added.

The 600,000 sq ft plant in South Carolina includes a 540,000-tonne-a-year electric arc furnace and 680,000-tonne-a-year rod mill, that serves the construction and automotive markets. Plans are afoot to re-start melting and rolling in the spring of 2018. This is the first step in GFG’s ambitious investment plans for the American steel industry.

“The company is already in discussions regarding the acquisition of other major US steel assets and new greenfield projects, which it expects to announce in the coming year,” said the statement.

The completion of the Georgetown deal follows successful negotiations between Liberty House and several key stakeholders, including the United Steelworkers of America union, Georgetown Council and the South Carolina state government, over the past few months.

Liberty House will initially re-hire 125 former employees at Georgetown and then extend the workforce to 250 employees in the medium-term. As per an agreement with the United Steelworkers, the company expects to fill in key roles on the furnace, casters and rolling mill by experienced former employees of the plant.

It is also in discussion with Georgetown Council about training programs to prepare a new generation of workers for the industry.

The group is targeting a major share of the U.S. market for home-produced wire rod, the demand for which is likely to grow substantially in the course of 2018.

John Brett, the president and CEO of ArcelorMittal United States, said: “Throughout the process, ArcelorMittal has been steadfast in our goal of maintaining the Georgetown steelmaking operation to preserve jobs and maximize the value of the property for our shareholders. While bittersweet for ArcelorMittal, we are hopeful that today’s announcement is a celebration for Liberty Steel and GFG Alliance, the United Steelworkers and the Georgetown community. We appreciate the patience of all of our stakeholders while we finalized this important transaction.”

For around 70 years, the Georgetown mill was an integral part of the state’s industrial infrastructure, until it was shut down in 2015. “Liberty House now aims to restore it to its former position of prominence and bring hundreds of skilled jobs back to the plant and to the local and state economy,” the statement added.

In October this year, Gupta had acquired Scottish bicycle firm Shand Cycles UK, thereby expanding his Liberty House bicycle manufacturing business. He began his professional life by selling bicycles for Victor, his father’s cycle manufacturing business in India.

In September, Gupta acquired a controlling stake in Adelaide-based Zen Energy for an undisclosed sum. The GFG Alliance’s energy division SIMEC Energy struck an agreement to buy 50.1 per cent shares of Australian solar company Zen to power its mining business and to meet the growing domestic energy needs.