Dubai PR Network, Online Press Release from Dubai and Middle East
 
Money, Business & Investments(Banking & Investments)
Filter PR by
  
GFG Alliance completes landmark acquisition of Arrium
 
Dubai, UAE, September 4, 2017:  Global metals, industrials and energy group, the GFG Alliance, today completed the acquisition of Australia’s leading integrated mining, recycling, steel manufacturing and steel distribution business, creating a new future for thousands of workers and their communities.
 
Executive Chairman of the GFG Alliance, Sanjeev Gupta, and his team, working closely with management and the workforce, will now embark on a 100-day review of the business and finalise a transformation plan to put the 6,000-worker enterprise, on a competitive, sustainable footing.
 
This will include finalisation of plans for major capital investments across several sites, utilisation of excess production capacity, reduction in raw material costs, greater energy efficiency, the development of new high value-added steel and steel-based products and services for the Australian market and increasing export of iron ore and steel products. 
 
Speaking ahead of tomorrow’s formal handover event at the iconic Whyalla integrated plant in South Australia, Mr Gupta said: “This is a historic moment. After a long period of uncertainty, the GFG Alliance and this highly-skilled and committed workforce can now work together to be the authors of an exciting new chapter in the Australian steel industry. As we now focus on our plans for investment and growth, we have every reason to be confident that this business shall increase its already significant role in supporting the construction of Australia’s future.”
 
Mr Gupta outlined some key elements of GFG’s intended transformation plan to expand the capability and capacity of its new Australian businesses, including:
  • Investing up to US$1 billion across the Whyalla steelworks and mining businesses to:
    • modernise key parts of the plant
    • expand steel-making capacity
    • expand the range of steel grades and downstream products produced; 
    • improve energy generation capabilities, including a new co-generation power plant to capture and reuse waste gases, generating on-site captive power. 
  • Boost capacity utilisation at the world-class electric arc furnaces and rolling mills in Melbourne, Sydney and Newcastle.
  • Align, improve, and expand production and service capabilities to capitalise fully on the significant infrastructure project growth in Australia.
In addition, the GFG Alliance is also exploring further potential investments in Australia, including:
  • A new state-of-the-art, world class steel plant of four to five million tonnes at Whyalla;
  • Major port and infrastructure development; 
  • Complementary mining activities, including iron ore and coking coal, to ensure raw material supply at stable prices;
  • New electric arc furnace capacity to melt more of Australia’s ferrous scrap at home, focused on excess scrap generating regions, pursuing GFG Alliance's globally renowned GREENSTEEL strategy, creating long-term sustainable value and jobs;
  • New large-scale pumped hydro and solar power plants to assist in addressing Australia’s energy imbalance and high energy costs.
Mr Gupta said his core business model is to own and manage as much of the supply chain as possible – adding value at each stage – and, as such, his Australian businesses will benefit greatly from integration with the rest of the global group. An early win, he said, would be the opportunity to make high grade (API) slab at Whyalla to feed the group’s plate mill in Scotland which will be used in the group’s large diameter SAW pipe mills in the North East of England.
 
He added that low-carbon GREENSTEEL production, recycling local scrap, using renewable energy, remained the group’s guiding principle and this approach would be extended to Australia.
 
The GFG Alliance executive chairman thanked all stakeholders including local, state and federal governments, the workforce, trade unions, customers and suppliers for supporting the business through challenging times. “Many people have made significant sacrifices and played a critical role in sustaining the operation through the difficult months of administration and we want to pay tribute to them for their patience and resilience which has now given the GFG Alliance this opportunity to take the business forward,” he said.
 
Australia’s Federal Minister for Industry, Innovation and Science, the Hon Arthur Sinodinos AO said: 'The federal government welcomes today's handover to GFG Alliance and looks forward to working with them and the South Australian Government to promote a globally competitive steel industry.'
 
Premier of South Australia, Jay Weatherill commended GFG and Mr Gupta for their investment and seeing the potential of the region. He said: “Today, marks the beginning of a hugely promising partnership between Whyalla and GFG Alliance. The vision and strategy that underpins this acquisition means that the livelihoods of thousands of people, who have made great sacrifices along the way, have been secured. South Australia looks forward to seeing Whyalla’s steel integrated into GFG’s global operations and increasingly competing in the global marketplace.”
 
The former Arrium mining and port operations will now be rebranded as SIMEC Mining and SIMEC Infrastructure divisions respectively while OneSteel and its operating divisions will become Liberty OneSteel. ARC, Austube Mills and product brands such as Cyclone and Waratah will remain unchanged.
 
The acquisition of the former Arrium businesses, which employ around 6,000 people, builds upon the GFG Alliance’s strong track record of acquisitions and turnarounds in the UK where it is now one of the country’s largest industrial employers with more than 5,000 staff in its Liberty House and SIMEC groups.

Posted by : Dubai PR Network Editorial Team
Viewed 3361 times
PR Category : Banking & Investments
Posted on : Monday, September 4, 2017  11:12:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : 300 Chinese investors to discover growth opportunities at RA...
Next Story : Al Ansari Exchange's ‘Beat the Heat' initiative provides coo...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Max Mara: Iconic Coats - Manuela & Teddy. [11706-Views]
Marina Rinaldi : Ashley Graham continues her role as the face of the brand for the Fall/W... [10193-Views]
LG Robots to Connect People for A Better Tomorrow [8918-Views]
Weekend Max Mara : The Pasticcino Bag - Fall/Winter 2017 [8906-Views]
Huawei CBG supports the Middle East Innovation Agenda by bringing cutting-edge innovative ... [8674-Views]
SAINT HONORE Charisma “Twist” for elegant lady [8247-Views]
Exhilarating new Roger Dubuis pop-up boutique in the US [6759-Views]
TAG Heuer's Globetrotter Exhibition Opens in Dubai Mall on September 15, As Part of an Amb... [6521-Views]
Vacheron Constantin Pays Tribute to the Middle East with Exclusive Overseas Timepieces [6515-Views]
Michael Kors Collection Spring 2018 Fashion Show [6399-Views]
Kate Upton, Ashley Graham, Andreea Diaconu, Skai Jackson and more in Michael Kors to a Par... [5990-Views]
Malabar Gold & Diamonds recognized as the ‘Superbrand' 5th time in a row by Superbrands Co... [5917-Views]
Dubai Culture Takes ‘Dubai Next' to London Design Festival [5899-Views]
New Balance Introduces the 574 Sport in Celebration of the Dubai Mall Store Opening [5777-Views]
NMC Healthcare wins ‘Brand of the Year 2017' by Superbrands [5575-Views]
MICHAEL Michael Kors Fall 2017 Nouveau Novelty Bags [5338-Views]
Glittering beauty set with diamonds - a true Gilda beauty [5203-Views]
DeLaCour Reflect Tourbillon [5161-Views]
IPhone 8 and IPhone 8 Plus to Arrive at DU on September 23 [4721-Views]
The Academic Arrangement Between Wise Indian Academy and Bhavans [4599-Views]
ZENITH DEFY LAB [4435-Views]
Introducing Malibu C and its Packets of Purity [4429-Views]
A gift of beauty for new moms and moms-to-be [4398-Views]
Introducing the GUESS Jeans Fall 2017 Advertising Campaign [4368-Views]
BCG Report Reveals the Six Imperatives to Empower Women Leaders of Tomorrow in the UAE [4130-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories