LIBERTY signs agreement to purchase plant and equipment from KG Steel

LIBERTY Steel Group has today signed an agreement to purchase the Dongbu steel plant and associated equipment from South Korean steel company, KG Steel.

The Dongbu plant in Dangjin, South Korea, comprises of: two modern, Consteel 160t electric arc furnaces; two single strand, vertically-curved Thin Slab continuous casters; and a Hot Strip Mill. The plant has an installed liquid steel capacity of 3 million tonnes per annum (mtpa) and a finished steel products capacity of 2.85mtpa.

Technical studies conducted by LIBERTY indicate that the Dongbu plant has the potential to perform at the highest standards in sector against KPIs including CO₂ emissions, energy efficiency, cost, operational flexibility and product range.

Pending final technical assessment and further diligence, LIBERTY intends install the equipment at its Galati plant in Romania. This will enable the business to transition to highly efficient low carbon electric arc furnace operations several years faster than previously planned and at significantly lower cost compared with alternative options analysed.

Sandip Biswas, Chief Investment Officer, LIBERTY Steel Group, said: “The purchase of this state of the art steel plant from KG Steel is part of our strategic plan to develop low carbon, modern and flexible steel plants and achieve our ambition to become carbon neutral by 2030. From our technical assessment of the plant, we believe it can be benchmarked to the highest operational efficiency levels and integrated into our existing asset footprint thus combining our upstream advantages with efficient steel making assets and distribution networks close to market.”