British-headquartered global metals, industrials and energy group, The UK-based GFG Alliance has announced the completion of its acquisition of Arrium, a leading leading Australian integrated mining, recycling, steel manufacturing and steel distribution business.

According to GFG, the acquisition will create a new future for thousands of workers and their communities.

Sanjeev Gupta, executive chairman of the GFG Alliance, and his team, who have worked closely with Arrium’s management and workforce, will now embark on a 100-day review of the business and finalise a transformation plan to put the 6,000-worker enterprise, on a competitive, sustainable footing.

This will include finalising plans for major capital investment across several sites, utilisation of excess production capacity, reduction in raw material costs, greater energy efficiency, the development of new high value-added steel and steel-based products and services for the Australian market and increasing exports of iron ore and steel products.

“This is a historic moment. After a long period of uncertainty, the GFG Alliance and this highly-skilled and committed workforce can now work together to be the authors of an exciting new chapter in the Australian steel industry. As we now focus on our plans for investment and growth, we have every reason to be confident that this business shall increase its already significant role in supporting the construction of Australia’s future,” said Gupta ahead of the handover event at the Whyalla integrated plant in South Australia.

He outlined some key elements of GFG’s planned transformation programme, which will include a US$1 billion investment on the Whyalla steelworks designed to modernise key parts of the plant and expand steel-making capacity as well as expanding the range of steel grades and downstream products produced.

The GFG Alliance is also exploring further potential investments in Australia, are also being explored by the GFG Alliance including a new state-of-the-art steel plant in Whyalla with a 4-5Mt/yr capacity.

Major port and infrastructure development and new EAF capacity to melt more of Australia’s ferrous scrap are also under consideration.

Arrium’s former mining and port operations will now be rebranded as SIMEC Mining and SIMEC Infrastructure divisions respectively while OneSteel and its operating divisions will become Liberty OneSteel. ARC, Austube Mills and product brands such as Cyclone and Waratah will remain unchanged.