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  • February 19, 2020
  • News

GFG Alliance completes its 100 day strategic review of LIBERTY Magona and pledges €100 million in transformational investment

• €100 million long term investment to build LIBERTY Magona into a leading supplier of coated steel products
• Major investment in the plant’s galvanizing and organic coating lines
• Commitment to be carbon neutral by 2030 (“CN30”)

Following the completion of a 100 Day strategic review GFG Alliance has today announced plans to transform LIBERTY Magona into a leading supplier of coated steel products and kick start its journey to carbon neutrality. The €100 million investment package includes plans to upgrade the plant’s galvanizing and organic coating lines, which will enhance business competitiveness.

Commenting on the announcement, Sanjeev Gupta, GFG Alliance Executive Chairman, said: “Through this substantial investment package we are preparing LIBERTY Magona to become a leading supplier of coated steel products and kick starting its journey towards carbon neutrality which we aim to achieve by 2030. Our focus is on making major upgrades that will significantly extend our product offering. Our strategy will ensure LIBERTY Magona is competitive and sustainable over the long term so it can reinvest and continue to provide high quality local employment for generations to come.”

Through these investments LIBERTY Magona will restore the plant’s long term profitability through developing its organic coated and galvanised product volumes to leverage its commercial strength. It will also invest in the plant’s galvanizing and organic coating lines, which will make the business more competitive and allow it to enter new Western European markets.

Giovanni Carpino, Managing Director of LIBERTY Magona said: “It has been a time of change and growth for everyone in our business as we have worked hard to develop a sustainable business plan while tackling the significant, short term market difficulties and integrating with LIBERTY’s global steel business. I have been very impressed with the commitment of everyone here at LIBERTY Magona and look forward to working with our skilled and engaged employees to make our plant a leading supplier of coated steel products.”

Since acquiring the business in July 2019 GFG Alliance has provided significant financial support and senior management resource to LIBERTY Magona which has delivered a range of operational improvements, including the refurbishment and restart of a previously closed pickling line.

The business has also implemented innovative programmes to enable employees and management to collaborate with each other to identify opportunities and implement change.

Neil Barrell, GFG Alliance Global Chief Operating Officer said: “Since we acquired the business in July last year we’ve worked closely with the team in LIBERTY Magona to understand the business in detail and implement a range of initiatives, from restarting the pickling lines to identifying opportunities to install energy-improvement projects. These changes together with the transformational investment programme we’re announcing today will greatly enhance our operational performance and help deliver our carbon neutral plans. I look forward to working with Giovanni and his team to help realise LIBERTY Magona’s potential.”

LIBERTY Magona continues its integration into LIBERTY Steel Group’s international business, which now covers 200 manufacturing locations in 10 countries, making it the 8th largest steel company outside China.