LIBERTY Steel Group (“LIBERTY”), China’s CISDI Engineering Co. (“CISDI”) have today formed a partnership, in collaboration with the Hungarian Ministry of Economic Development, to prepare for the decarbonisation of the Dunaferr steel works.

LIBERTY and CISDI will develop and implement a decarbonisation pathway which will see the Dunaferr plant shift from coal based steel making to Electric Arc Furnace technology, and in doing so reduce direct CO₂ emissions by approximately 80%. The plans, which are subject to EU regulatory approval, will see the installation of a new 150t capacity Electric Arc Furnace to be supplied by CISDI. The state-of-the-art furnace carries the latest in energy efficient technology and allows for flexibility in charge materials, which would significantly enhance the competitiveness of the Dunaferr operation.

LIBERTY and CISDI will bear the primary responsibility for the technical aspects of the project, while the Hungarian Ministry of Economic Development has committed to exploring support for the project’s delivery through its administrative processes. Bringing together the plant operator, equipment supplier and the Ministry into a single collaborative arrangement will ensure the decarbonisation plan can be effectively implemented.

The parties today signed an MoU in Budapest setting out the terms of collaboration in the presence of senior executives from LIBERTY, CISDI and the Hungarian Ministry of Economic Development.

Sanjeev Gupta, LIBERTY’s Executive Chairman, said: “We’re transitioning to lower carbon technologies at speed across our global operations and we intend to do the same at Dunaferr. We know from experience that to move quickly you need the support of world class technology partners, the right financing structures and a supportive government, which is why the formation of this group is so important. We look forward to developing these plans with CISDI and the Ministry of Economic Development to ensure we put the Dunaújváros steelworks on a sustainable, competitive pathway as quickly as possible.”

Márton Nagy, Minister of Economic Development, said that “We have come a long way in the past year. As while thousands of jobs were endangered due to the negligence of the previous irresponsible management, and last December even the coal supply was not guaranteed at the plant, today we are witnessing the signing of an agreement that will lay the foundation for green steel production in Dunaújváros, which is the future of the steel industry. This will provide long-term security and predictability for thousands of jobs. Moreover, Dunaferr’s role is also of national economic importance, as domestic steel production also contributes to increasing economic sovereignty”.

Xiao Xuewen, Chairman of CISDI Engineering Co Ltd: “It is a great honour for us that we can once again work for Liberty Group in the green transformation and decarbonisation of the Dunaferr plant in Hungary. For implementation of the EAF project, we will, as always, fully exert our professionalism to achieve high-quality delivery, spare no effort to provide all our technical support for the Liberty Group to achieve production of Green Steel and be carbon-neutral in Europe.”

Notes on the terms of agreement

• LIBERTY and CISDI will bear the primary responsibility for the technical aspects of the project, including design, engineering, procurement of equipment, and technology services.
• The Hungarian Ministry for Economic Development will explore how it can support the project, including exploring how to facilitate any required administrative processes for the establishment of the EAF facility.
• The parties will establish a joint working group comprising representatives from each party to oversee the project’s progress, address challenges, and ensure effective communication.
• The parties will collaborate to ensure that the new Electric Arc Furnace meets or exceeds relevant environmental and sustainability standards.

Further information from:

Note to Editors:

LIBERTY Steel Group is part of GFG Alliance, a collection of global businesses and investments owned by Sanjeev Gupta and his family. GFG Alliance is structured into three core industry brands; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group, independent of each other yet united through shared values and a purpose to create a sustainable future for industry and society. GFG Alliance employs c.35,000 people, across 30 countries and has revenues of >USD $20bn.

For more information, please visit www.libertysteelgroup.com

CISDI Engineering Co Ltd

Headquartered in Chongqing, China, CISDI Engineering Co., Ltd. is a state-owned engineering company, supplying consulting, engineering design, EPC contracting, and equipment integration services to steel producers all over the world. With over 50 years of experience, CISDI offers quality services for every aspect of production for projects in the metal industry. For more information, please visit http://www.cisdigroup.com/