LIBERTY’s technology partner has received financial backing for a major investment at the Dunaújváros steelworks in Hungary.   Preliminary support for Buyer’s Credit Insurance has been agreed in principle between CISDI Engineering and China’s Export and Credit Insurance Corporation (Sinosure).  The agreement covers €1.3bn in investment and paves the way for the financing, export and installation of a three million tonnes per annum Electric Arc Furnace facility at LIBERTY Dunaújváros.

The agreement in principle will facilitate further grant support and guarantees to finalise the capital structure behind this landmark investment, and further underlines the strength of cooperation between Hungary and China.

Once installed, the new facility will replace increasingly obsolete coal based steel making methods with the latest in sustainable steel making technology.  The two new 140 tonne EAFs, including the upgraded Secondary Metallurgy facility will be capable of recycling steel scrap and Direct Reduction Iron and convert into high quality slabs for further processing in the Hot Strip Mill.  The plant is expected to have a three million tonne capacity per annum, and reduce direct CO₂ emissions by around 80%.

The €1.3bn investment package will also include an upgrade to existing hot rolling and galvanizing production lines and the establishment new lines to cater for high value defence and automotive applications for Hungary’s growing manufacturing base.

The announcement coincides with a visit from CISDI to LIBERTY Dunaújváros as it continues its technical and feasibility studies before finalising the production specifications for the new ultra-modern and green steel capable steel plant.  During the visit experts from CISDI and LIBERTY teamed up with specialist from Swiss NPT and RCG to plan out optimum production layouts, technology, and auxiliary equipment needs for power, gas, water and steam.

LIBERTY Steel Europe CEO, Thomas Gangl, said:

“This important milestone lays the foundation for our LIBERTY Dunaújváros plant to become a modern green steel operation leading the way in sustainable steel making technologies.  The progress we’re making with our partners on financing and our technical feasibility studies bodes well for the project which remains on track. We will continue to work with all stakeholders to ensure its effectively delivery.”

Gergely Fabian, State Secretary for Industrial Policy and Technology, commented: 

“I’m excited to see the progress on the green steel project with coordinated efforts from the LIBERTY team and other experts engaged for the project. We will continue to monitor and support this strategic project during the course of implementation as it is of national significance.”

CISDI Chairman, XIAO Peng, said: 

“We are pleased to partner with LIBERTY Dunaújváros on this prestigious project. After working with the team at Dunaújváros and Sinosure for a number of months its great news that we have now received the letter of interest from Sinosure to support this project. This represents a major step along the road to decarbonising and revitalising the plant at Dunaújváros. The plant will incorporate the very latest Electric Arc furnace, Ladle Furnace, Vacuum degassing, slab caster and AI control systems from CISDI to bring the plant to a world beating level of efficiency with 3 million tonne production capacity with considerable savings in CO2 emissions.”

Mr HE Zhigang, Sinosure Shanxi said:

“This important project will be a showcase for advanced Chinese technology supporting the decarbonisation and modernisation of the Hungarian steel industry.  The cooperation between LIBERTY Dunaújváros and CISDI underlines the growing relationship between China and Hungary, and shows the huge potential benefits of investment in sustainable steel making technologies.  We’re delighted to provide our preliminary Support for Buyers Credit and look forward to working with CISDI and LIBERTY as they complete their feasibility studies and move forward with this exciting development.”