Global industrial leader GFG Alliance, the parent company of the international industrial and metals group Liberty House, has announced that it has completed the strategic acquisition of Adhunik Metaliks Ltd and Zion Steel Ltd, which thus become the first steel capacities owned by the holding in India.
The deal cost was INR 4.25 billion ($60 million), according to the official statement. Adhunik Metaliks, located in Odisha, operates a blast furnace and has an electric arc furnace with a 500,000 mt per year steelmaking capacity. The steel rolling capability of the two plants is 400,000 mt per year of different kinds of steel products. Nevertheless, longs output is the major focus, SteelOrbis has learned. Steel products from these Indian plants are used in the automotive, energy, engineering, and oil and gas sectors.
“Today marks an important milestone in our global steel strategy with the purchase of Adhunik Metaliks and our entry into India - one of the fastest growing and most vibrant steel markets in the world. We see huge potential in this business through the introduction of our Greensteel model to create a competitive, sustainable operation to serve the local market,” CEO of GFG Alliance Sanjeev Gupta said. The company’s Greensteel model aims to revive the steel plants, combining steel recycling with low carbon and renewable power sources.
After reviving the facilities, Indian capacities will be integrated into the Liberty Steel Group, the separate global entity of steel businesses of GFG Alliance.