- February 19, 2020
- Press Release
GFG Alliance completes its 100-day strategic review of LIBERTY Galaţi and pledges €1bn in transformational investment
- €1bn transformational investment to create a regional steel champion
- Major upgrades to modernise casters, rolling mills and coating lines
- Plans to install a new EAF to help reach carbon neutrality by 2030 (“CN30”)
Following the completion of a 100 Day strategic review GFG Alliance has today announced plans to transform LIBERTY Galaţi into a regional champion in high quality steel production and kick start its journey to carbon neutrality. The €1bn (RON4.8 billion) ten-year investment programme includes plans for major upgrades to its casters, rolling mills and coating lines, as well as plans to install an Electric Arc Furnace (EAF) to significantly reduce emissions and its dependency on imported natural resources.
Commenting on the announcement, Sanjeev Gupta, GFG Alliance Executive Chairman, said: “Through this substantial investment package we are preparing LIBERTY Galaţi to become a regional steel champion and kick starting its journey towards carbon neutrality, which we aim to achieve by 2030. Our focus is on making major upgrades that will dramatically enhance our product offering, reduce emissions and provide greater operational flexibility through our plans to install a new Electric Arc Furnace. Our strategy will ensure LIBERTY Galaţi is competitive and sustainable over the long term so it can reinvest and continue to provide high quality local employment for generations to come.
We have great confidence in the Romanian Government’s commitment to help us further develop the plant and deliver economic benefits to its employees, local communities and Romania more widely.”
Through these investments LIBERTY Galaţi will regenerate its steel casting and rolling mills, as well as invest in new galvanizing and organic coating lines. This will allow the business to develop an enhanced portfolio of flat and long steel products with the aim of increasing its local market share and building production to 4 million tonnes per annum over time. To further enhance the competitiveness of its operations LIBERTY Galaţi will also begin construction of its own dedicated lime plant.
Bogdan Grecu, CEO for LIBERTY Galaţi, said: “We now have a clear long-term transformation plan which will not only help us weather challenging market conditions in the short term but enable us to be a partner of choice for customers and suppliers, build our local market share and reduce our carbon footprint. I have been very impressed with the commitment everyone at LIBERTY Galaţi has shown to develop our exciting plans and look forward to working with our skilled and engaged employees to become LIBERTY’s flagship flat steel producer.”
Since acquiring the business in July 2019 GFG Alliance has provided significant financial support and resources to LIBERTY Galaţi which is delivering a range of operational improvements, including the starting of a new cutting line, work on the installation of a new hot stove and environmental projects. 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 Galaţi to understand the business in detail and implement a range of initiatives, from restarting and upgrading processing 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 Bogdan and his team to help realise LIBERTY Galaţi’s huge potential.”
LIBERTY Galaţi 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.
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