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  • September 16, 2019
  • News

Liberty Magona celebrates joining the GFG Alliance

Multi-million investment commitment made to increase production

International metals and industrial entrepreneur Sanjeev Gupta today pledged to invest more than €15m into Liberty Magona at Piombino to increase production and ensure the long term sustainability of the plant. A project to restart and refurbish a previously closed pickling line is already under way.

In the presence of Enrico Rossi, the President of Tuscany, Mr Gupta joined employees and around 150 guests to formally welcome the Magona steelworks into the GFG family. Liberty Magona was bought at the beginning of July, along with six other major steelworks and five service centres across seven European countries. The €740 million deal made Liberty Steel one of the top ten steel producers globally, excluding China, with a total production capacity in excess of 18 million tonnes covering a wide range of finished products.

Liberty Steel Continental Europe aims to make the 455-worker plant an important part of an extensive manufacturing supply chain providing materials and components for industry across western Europe. To start that process Liberty has already set up a technical working group to consider the potential synergies with Liberty Galaţi, its integrated steelworks in Romania. Magona will produce around 800,000 tonnes of galvanised, and pre-painted steel each year for automotive, construction, industrial and white goods manufacturers an increase from from 550,000 tonnes currently.

The completion of the acquisition triggered the start of a 100-day review during which senior executives from Liberty Steel Continental Europe have worked with the Magona management team, trade unions, customers and suppliers, to complete a comprehensive analysis of the businesses. This has allowed them to explore investment opportunities and develop detailed plans to boost competitiveness, extend product range and support sales growth.

Sanjeev Gupta, GFG Executive Chairman, said: “I am extremely proud to welcome the hundreds of skilled and committed staff at Piombino into the GFG family. With the support of the here, we will define a sound growth strategy so that Liberty Magona can become a beacon of strength and prosperity in the region. We look forward to working with Giovanni and his team to create a bright and sustainable future for our group and our industry.”

Jon Bolton, CEO of Liberty Steel Continental Europe added: “Liberty Magona is a well-positioned, efficient operation with an excellent workforce and we intend to use these strong foundations to expand into western Europe. We believe the quality of the existing facilities, complemented by incremental capex investment will facilitate the development of its product portfolio.”

Giovanni Carpino, MD for Liberty Magona said: “We are very proud to have joined the GFG family and have enjoyed working with Sanjeev and his dynamic team. Their experience of the steel industry and their enthusiasm to help us to bring the Magona back to the centre of international steel markets. We look forward to investing in and developing our business for the future.”