GFG Alliance has completed the strategic acquisition of Adhunik Metaliks (Adhunik) and Zion Steel (Zion) in a $60 million cash deal. The transaction marks the Alliance’s entry into the Indian steel market.
The company plans to introduce its GREENSTEEL model to revive the steel plants and create a more sustainable, competitive operation serving local markets.
Sanjeev Gupta, the Indian-born British businessman and executive chairman of the GFG Alliance, said: “Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India – one of the fastest growing and most vibrant steel markets in the world. We see huge potential in this business through the introduction of our GREENSTEEL model to create a competitive, sustainable operation to serve the local market.
“It has been a challenging journey to get us to this stage, but we now look forward to starting work in partnership with all stakeholders to revive these plants and bring employment back. On a personal note, it is great to be investing in the country where my family began in the steel industry a generation ago.”
Adhunik is an integrated steel plant located at Chadrihariharpur near Rourkela in Odisha. The plant has both blast furnace and electric arc furnace (EAF) steel making capability with 500kt/yr capacity, and a 34MW captive power plant. Adhunik along with Zion Steel, its associated steel rolling facility, has a combined rolling capacity of 400kt/yr. The sites produce products for the automotive, energy, engineering and oil & gas sectors.
The immediate focus will be on reviving and restoring the facilities and operations, and once stabilised the business will begin its integration into the LIBERTY Steel Group. In October 2019 GFG Alliance announced the consolidation of its steel businesses into one global entity – the Liberty Steel Group – the eighth largest steel producer in the world outside China, with operations in 200 locations in 10 countries. Liberty Steel Group has a target to become carbon neutral by 2030.