According to a news release issued on July 5, 2017, by GFG Alliance, a “binding agreement” has been signed that includes most of the firm's asset.
The acquired assets include OneSteel Recycling, which has more than 20 scrap processing locations in Australia and a trading office in Hong Kong, as well as OneSteel Secondary Steelworks, which operates two electric arc furnace (EAF) mills in Australia with 1.4 million metric tons of annual capacity, plus three rod and rolling mills.
Also included are the Whyalla Steelworks, a 1.2 million-metric-tons-per year integrated steelmaking complex in South Australia, plus adjoining port and rail infrastructure; Arrium's iron ore mining operations, predominantly in South Australia, which can produce up to 12 million metric tons per year of iron ore; and steel tube mills and fabrication plants located throughout Australia.
“We have a vision to create a vertically integrated and sustainable industrial business that encompasses mining, metal recycling, primary metal production, engineering and distribution, and which also includes the use of renewable energy consistent with our GreenSteel strategy,” says Sanjeev Gupta, executive chairman of the GFG Alliance.
Continues Gupta, “The Arrium business fits perfectly with this strategy and we believe it has an exciting future leveraging our GreenSteel vision, which has been well proven in the U.K.”
In the United Kingdom, the GFG Alliance has established the Liberty House Group, which now operates several steel mills, an aluminum smelter and the Liberty Metals Recycling network of scrap yards and trading offices.
A news release issued by KordaMentha Restructuring, which has been overseeing Arrium’s assets in receivership, says the sale is subject to review by Arrium’s committee of creditors and pertinent regulatory agencies. Pending those approvals, completion of the sale is expected in late August, says KordaMentha.
“Taking all factors into consideration, the administrators and sale advisors Morgan Stanley decided the GFG Alliance offer was superior to the conditional offer of the Korean consortium with whom we were negotiating,” says administrator Mark Mentha.